Gold Steady as Dollar and Yields Drop After US Wholesale Prices Fell in June
Gold was steady early on Wednesday as the dollar and treasury yields fell after the US reported an unexpected drop in wholesale price inflation last month. Gold for August delivery was last seen up 0.2% to $4,078.40 per ounce. The US Bureau of Labor Statistics reported the June Producer Price Index fell by 0.3% in June, down from a rise of 0.6% in May and under expectations for a flat reading, Core PPI, excluding volatile food, energy and trade services rose 0.1% last month, down from a rise of 0.8% in May and under expectations for a rise of 0.3%. The drop follows the bureau's Tuesday report showing consumer prices also eased last month. The slowing growth in consumer and wholesale prices is checking worries the Federal Reserve will need to raise interest rates to manage rising costs. However, higher oil prices as Iran and the U.S. renewed fighting this week is reviving rate worries. "Softer-than-expected US CPI data boosted expectations for a less aggressive Federal Reserve. However, the move quickly faded, with prices trading back down to around USD 4,030, as renewed gains in oil prices and fresh US strikes against Iran revived inflation.
Gold was steady early on Wednesday as the dollar and treasury yields fell after the US reported an unexpected drop in wholesale price inflation last month.
Gold for August delivery was last seen up 0.2% to $4,078.40 per ounce.
The US Bureau of Labor Statistics reported the June Producer Price Index fell by 0.3% in June, down from a rise of 0.6% in May and under expectations for a flat reading, Core PPI, excluding volatile food, energy and trade services rose 0.1% last month, down from a rise of 0.8% in May and under expectations for a rise of 0.3%.
The drop follows the bureau's Tuesday report showing consumer prices also eased last month.
The slowing growth in consumer and wholesale prices is checking worries the Federal Reserve will need to raise interest rates to manage rising costs.
However, higher oil prices as Iran and the U.S. renewed fighting this week is reviving rate worries. "Softer-than-expected US CPI data boosted expectations for a less aggressive Federal Reserve.
However, the move quickly faded, with prices trading back down to around USD 4,030, as renewed gains in oil prices and fresh US strikes against Iran revived inflation.