New York gold futures closed lower on Wednesday (Oct. 12) as investors worried that Producer Price Index (PPI) that is higher than expected This will accelerate the US Federal Reserve (Fed) to raise interest rates sharply to control inflation.
The COMEX (Commodity Exchange) gold contract will be delivered in December. It was down $8.5, or 0.5%, at $1,677.5 an ounce.
Silver metal contract for delivery in December It fell 54.9 cents, or 2.82 percent, at $18.938 an ounce.
Platinum contract delivered in Jan. It fell $18.1, or 2.01%, at $881 an ounce.
Palladium contract delivered in December Down $14 or 07% to close at $2,136.40/ounce.
The gold contract fell. The U.S. Department of Labor said its PPI, a measure of inflation on manufacturers’ spending, rose 0.4% in September from a month ago. The PPI rose 8.5 percent in September, above analysts’ forecast of 8.4 percent. from 8.7% in August.
The core PPI, excluding food and energy, rose 0.3% month-over-month. in line with analysts’ forecasts After gaining 0.3% in August and year-on-year, the core PPI rose 7.2 percent, below analysts’ forecast of 7.3 percent from 7.2 percent in August.
In addition, gold prices were also pressured by the dollar’s appreciation. and the rebound in US government bond yields
A stronger dollar will reduce the attractiveness of gold. by making gold contracts more expensive for holders of other currencies. As the rebound in US Treasury yields increases the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.
The dollar index, which measures the dollar’s movements once morest six major currencies in a basket of currencies, rose 0.09% to 113.3200 on Wednesday (Oct. 12).
Investors will await the release of the Consumer Price Index (CPI) on Thursday (Oct. 13) for signs of inflation and the direction of the Fed’s interest rates. The survey said the CPI would continue to indicate hot inflation in September. It might rebound more than 8%, near a 40-year high.
