Live Spot Gold
Bid/Ask
4,139.304,141.30
Low/High
4,109.604,156.60
Change
+5.20+0.13%
30daychg
+68.70+1.69%
1yearchg
+1,512.80+57.61%
Silver Price & PGMs
(Kitco News, Tuesday. Nov. 25th, 2025) – The gold market is seeing renewed momentum with prices pushing back above $4,100 as markets once again start pricing in a potential rate cut next month from the Federal Reserve.
Although delayed, according to some economists, wholesale inflation pressures should not derail the Federal Reserve’s easing path.
The headline Producer Price Index (PPI) rose 0.3% in September, following August’s 0.1% decline, the U.S. Labor Department announced on Tuesday. The latest inflation data rose in line with expectations.
In the last 12 months, headline wholesale inflation increased 2.7%, the report said, also matching Wall Street forecasts.
Core PPI, which strips out volatile food and energy costs, rose 0.1% in September, following August’s 0.1% decline. Core producer inflation was slightly weaker than expected, as consensus forecasts were looking for a 0.2% increase.
Annual core PPI was 2.6%, against the consensus expectation for a 2.7% reading.
Gold has seen solid momentum since the start of the new trading week and has received a modest boost in initial reaction to the outdated inflation data.
The report’s release was delayed because of the U.S. government’s record 43-day shutdown; however, the data was collected before the department was furloughed. Although the data shows inflation is relatively benign, some analysts are dismissing it as outdated news.
PPI is viewed as a leading inflation indicator as producers pass higher input costs on to their customers.
Naeem Aslam, Chief Investment Officer at Zaye Capital Markets, noted that the U.S. dollar is taking a hit as interest rate expectations decline.
“Gold is loving the script with the dollar on the back foot and the “higher for longer” narrative losing steam, the path of least resistance stays north,” he said in a note. “At $4137 the metal is already perking up, and a sustained break above $4150 could open the door to $4200 faster than most expected. Safe-haven flows plus a friendlier yield backdrop make this soft PPI print a clear tailwind—bears are running out of reasons to fight the tape.”
According ot the CME FedWatch Tool, markets are pricing an 84% chance of a rate cut next month. However, economists have been reluctant to shift their expectations and still see the decision as a 50/50 split.
Posted by:
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com