(Kitco News) – The gold market remains under pressure, but continues to maintain around $ 1,300 an ounce after a sharp increase in inflationary pressure last month
On Thursday, the US Department of Labor said its manufacturer of the Price Index ( PPI) in March increased by 0.6% after an increase of 0.1% in February; the data was significantly stronger than expected, with economists forecasting 0.3%
For the first time in four months, producer inflation has aggravated expectations.
At the same time, the main PPI, which removes volatile food and energy costs, increased by 0.3% last month, after rising in February by 0.1%. Economists expect wholesale inflation to grow by 0.2%.
However, the gold market does not see much response to higher inflation data. June gold futures were traded at $ 1
Economists pay close attention to producer prices, as it is a leading indicator of consumer prices. Traditionally, companies are shifting to higher costs for their customers. Economists note that strong PPI data increase the risk of adverse effects on consumer inflationary pressures
. The gasoline index increased by 16% last month, according to the report.
For the year, overall inflation increased by 2.2%, compared with 1.9%, reported in February; however, base inflation for the year was 2%, compared with February by 2.3%. According to reports, it is the lowest annual inflation rate since August 2017.
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