Gold price drops sharply as US Producer Price Index (PPI) for February comes in hotter-than-anticipated. Higher bond yields and rising US Dollar Index contribute to the decline. Retail Sales also fail to meet expectations.
Gold price falls sharply on hot US PPI data for February. The US Retail Sales grew by 0.6%, failing to meet expectations. Higher US bond yields weigh on the Gold price. Gold price (XAU/USD) drops sharply in Thursday’s early New York session as the United States Bureau of Labor Statistics (BLS) has reported a hotter-than-anticipated Producer Price Index (PPI) for February. The precious metal has come under pressure as fears of inflation remaining persistent have deepened.
The US February inflation data released on Tuesday came in hotter-than-expected. Now, a similar trend from the PPI data has escalated uncertainty over Federal Reserve (Fed) rate cut expectations for the June policy meeting. This has led yields on 10-year US Treasury bonds higher to 4.28%, resulting in a sharp increase in the opportunity cost of holding non-yielding assets such as Gold. The US Dollar Index (DXY) rises to 103.10, making the Gold price expensive for investors. Meanwhile, the US Census Bureau has reported that Retail Sales grew slower than market expectations
Gold Price US PPI Data Retail Sales Inflation Federal Reserve Bond Yields US Dollar Index
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