(Kitco News) - The gold market is holding steady after the latest data shows U.S. producers saw easing price pressures on balance last month.
The headline Producer Price Index (PPI) posted a flat 0.0% in July, following June’s unrevised -0.3% drop, the U.S. Labor Department announced on Thursday. The latest headline data was lower than expectations, as economists looked for a 0.2% increase.
In the last 12 months, headline wholesale inflation increased 4.7%, the report said, below the consensus for 4.9% and June’s unrevised 5.5% reading.
Core PPI, which strips out volatile food and energy costs, rose 0.2% in July, below economists’ 0.3% consensus forecast and following June’s upwardly revised 0.4% reading. Annual core PPI rose 4.2%, in line with the consensus expectation and below June’s unrevised 4.7% print.
Gold prices saw little reaction immediately after the 8:30 am ET data release. Spot gold last traded at $4,387.56 for a loss of 0.47% on the day.
PPI is viewed as a leading inflation indicator as producers pass higher input costs on to their customers.
