Gold holds gains after Jan. U.S. producer prices jump 0.5%
(Kitco News) - Spot gold held overnight gains after a Labor Department report showing that U.S. producer prices for finished goods jumped by a seasonally adjusted 0.5% last month. Spot gold was last up $5.40 to $1,606.60 an ounce.
The core index for PPI, excluding the volatile food and energy sectors, was up 0.3%.
Going into the report, consensus expectations compiled by news organizations had been for a rise of 0.1% or 0.2% in the headline figure. The core rate was expected to be up 0.1%.
On an unadjusted basis, the PPI index increased 2.1% for the 12 months ending in January. The government said this was the largest advance since the index moved up by 2.1% for the 12 months ended May 2019.
Market participants monitor the data as a gauge for inflation at the wholesale level.The report came out at the same time as monthly data on U.S. housing starts.