Gold price sees muted price action following mixed inflation data
(Kitco News) - The gold market is seeing little movement as future inflation pressure remained muted with producer prices rising relatively in line with expectations.
Friday, the U.S. Labor Department said its Producer Price Index (PPI) rose 0.1% in November, following October’s increase of 0.3%; the data was in line with economists’ forecasts.
Core PPI, which strips out volatile food and energy costs, rose 0.1% last month, following October’s increase of 0.1%. However, economists were expecting to see a 0.2% increase.
The gold market is not seeing much reaction to the latest inflation data. February gold futures last traded at $1,842.5, up 0.28% on the day.
Economists pay close attention to producer prices as it is a leading indicator for consumer prices. Traditionally, companies pass on higher costs to their customers.