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Gold Holds Gains As U.S. Nov. Producer Price Index Rises 0.1%

Kitco News

Editor's Note: Updating earlier story with more details from report.

(Kitco News- Gold prices maintained early gains Tuesday after a Labor Department report showed that U.S. producer prices for finished goods rose by a seasonally adjusted 0.1% in November.

Going into the report, consensus expectations compiled by news organizations had been for steady or a fall of 0.1% in the headline figure.

As of 8:40 a.m. EST, spot gold was trading $2.50 higher to $1,246.30 an ounce. One minute prior to the data, the metal was at $1,246.50.

The rise was an unadjusted 2.5% for the 12 months ending in November.

The index for final demand, minus food, energy and trade services, rose by 0.3% last month, the third straight increase. On a year-on-year basis, this reading gained 2.8%.

Market participants monitor the data as a gauge for inflation at the wholesale level. The monthly report on inflation at the consumer level is scheduled for release on Wednesday.

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