(Kitco News) -Gold prices are back in positive territory as the latest data showed most elements of producer price inflation in the U.S. economy cooling more than expected.
The Producer Price Index (PPI) rose 0.2% last month after February’s 0.6% increase, the Labor Department said on Thursday. The latest inflation data was cooler than expected as economists looked for a 0.3% increase.
The report said that in the last 12 months, headline inflation rose 2.1%, also below expectations for a 2.2% reading.
“The March increase in the index for final demand is attributable to a 0.3-percent rise in prices for final demand services,” the report said. “In contrast, the index for final demand goods edged down 0.1 percent.”
Meanwhile, core PPI rose 0.2% in March, in line with the consensus forecast and following February’s 0.3% increase.
For the year, core inflation is at 2.4%, up from February’s 2.0 print and also above the expectation for a 2.3% reading.
The gold market saw an immediate spike in the wake of the PPI data, which was released at the same time as weekly jobless claims. Spot gold last traded at $2342.85 per ounce, up 0.32% on the day.
