Gold Prices Remain Down Following In-Line U.S. PPI Data
(Kitco News) - Gold prices remain under pressure as producer inflation pressures rise in line with expectations.
Tuesday the U.S. Labor Department said its Producer Price Index (PPI) rose 0.1% in May, following April’s increase of 0.2%; the data were in line with consensus forecasts. For the year wholesale inflation rose 1.8%, the report said.
At the same time core PPI, which strips out volatile food and energy costs, rose 0.2% last month, following April’s increase of 0.1%. Core inflation rose 2.3% for the year, the report said.
The gold market is seeing little reaction to the economic data as investor sentiment improves because of a further easing of global trade tensions. August gold futures last traded at $1,325 an ounce, down 0.32% on the day.