[vi] Gold holding overnight gains above $4,100 even as US PPI rises 6.3% in September

[vi]

[vi] (Kitco News) - After a solid overnight rally, rising inflation fears are limiting gold’s recovery Thursday, as higher producer prices show that the growing threat is unlikely to abate anytime soon.

[vi] The headline Producer Price Index (PPI) jumped 1.3% in September, following August’s revised 0.5% increase, the U.S. Labor Department announced Thursday. The latest headline data was significantly hotter than expected, as economists had forecast a 0.6% increase.

[vi] “The September increase is the largest advance since rising 1.7 percent in March 2022,” the report said.

[vi] Over the last 12 months, headline wholesale inflation increased 6.3%, above the expected 5.3% rise. The report noted that this was the biggest annual increase since December 2022.

[vi] Core PPI, which strips out volatile food and energy costs, rose 0.7% last month, above economists’ consensus forecast of 0.3% and following August’s upwardly revised 0.3% increase. Annual core PPI rose 5.0%, above consensus estimates of 4.4%.

[vi] The gold market is holding on to its overnight gains above $4,100 an ounce. Spot gold last traded at $4,151.90 an ounce, up more than 1% on the day.

[vi] Analysts note that persistent inflation is a headwind for gold, as it raises the opportunity cost of holding the non-yielding asset. However, some analysts have said that higher prices could eventually become a positive driver for gold if markets begin to believe that the Federal Reserve will be unable to get ahead of the growing inflation threat.

[vi]

[vi] [Neils Christensen](/author/neils-christensen)

[vi] Neils Christensen has a diploma in journalism from Lethbridge College and has more than a decade of reporting experience working for news organizations throughout Canada. His experiences include covering territorial and federal politics in Nunavut, Canada. He has worked exclusively within the financial sector since 2007, when he started with the Canadian Economic Press. Neils can be contacted at: 1 866 925 4826 ext. 1526 nchristensen at kitco.com @KitcoNewsNOW

[vi] https://twitter.com/@KitcoNewsNOWhttps://www.linkedin.com//neils-christensen-16904a18/

[vi] Tags:

[vi] goldgold pricesUS inflationUS PPIus economyFederal ReserveUS interest ratesmonetary policyCentral banks

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[vi] Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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