
Please try another search
Investing.com - Gold prices traded higher on Thursday as softer-than-expected inflation indicators eased concerns over an acceleration of rate hikes from the Federal Reserve ahead of the consumer price index out on Friday.
At 10:29 AM ET (15:29 GMT), gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose $2.20, or 0.18%, to $1,223.20 a troy ounce.
Producer price inflation for July was unchanged from the previous month, with the annualized increase easing from 3.4% to 3.3%, according to data released on Thursday.
Core PPI, which excludes volatile food and energy costs, also unexpectedly eased to a gain of 2.7% from a year earlier.
When producers pay more for goods, they are more likely to pass price increases on to the consumer, so PPI could be considered a leading indicator of inflation.
All of the readings were softer than consensus had expected, easing pressure on the Federal Reserve to accelerate rate hikes for the future.
Still, market participants were likely to remain cautious as they await the release of the more widely followed consumer price index for July.
Headline inflation is forecast to inch up to 3.0% while core inflation is expected to hold at 2.3%, above the Fed’s 2% objective.
Markets have priced in a rate hike for the Fed’s next meeting in September and the probability of an additional hike in December has been hovering around 70%, according to Investing.com’s Fed Rate Monitor Tool.
Higher interest rates tend to weigh on demand for gold, which doesn’t bear interest, in favor of yield-bearing assets.
Meanwhile, unemployment data out Thursday did little more than confirm the solid state of the U.S. labor market. Initial jobless claims rose by 213,000, beating the estimate for a rise of 220,000.
In other metals trading, silver futures rose 0.38% at $15.490 a troy ounce by 10:31 AM ET (15:31 GMT).
Palladium futures advanced 0.41% to $890.00 an ounce, while sister metal platinum gained 1.01% at $837.90.
By Barani Krishnan Investing.com -- Fears of a recession and a seemingly ruthless Federal Reserve have wreaked havoc this month, with U.S. crude posting back-to-back weekly losses...
KRUEN, Germany (Reuters) - The Group of Seven rich democracies will announce a ban on imports of Russian gold on Tuesday, as part of ongoing efforts to hold Russia accountable for...
LONDON (Reuters) -Britain, the United States, Japan and Canada will ban new imports of Russian gold as part of efforts to tighten the sanctions squeeze on Moscow for its invasion...
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
I feel that this comment is:
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.