Gold Prices Relatively Unchanged Following Muted PPI Inflation Data
(Kitco News) - Gold prices remain relatively unchanged on the day as wholesale inflation pressure remain muted last month
Thursday, the U.S. Labor Department said its Producer Price Index (PPI) rose 0.2% in April, following March’s increase of 0.6%; the data was in line with economists’ forecasting an increase of 0.2%. For the year producer inflation came in at 2.2%, unchanged from the previous month.
However, at the same time core PPI, which strips out volatile food and energy costs, rose 0.1% last month, following March’s increase of 0.3%. Economists were expecting to core inflation to rise 0.2%. Annually inflation rose 2.4%, also unchanged from March.
According to some analysts, weak inflation pressures will be good for gold as it will ensure that the Federal Reserve stays on the sidelines for the foreseeable future.
The gold market has seen muted reaction to the inflation data. June gold futures last traded at $1,283.10 an ounce, up 0.12% on the day.