U.S. PPI beats expectations in May, gold price flat - Kitco NEWS

(Kitco News) Gold was largely unchanged after the U.S. Producer Price Index (PPI) beat expectations in May by rising 0.8%.

The market consensus was calling for a rise of 0.6% on a monthly basis.

The annual PPI came in above market forecasts as well, rising 6.6%. Core PPI, which strips out volatile food and energy prices, also surprised on the upside, with a rise of 0.7% versus the expected 0.5% advance. And the annual core PPI was in-line with expectations, rising 4.8%.

Market participants pay close attention to the PPI as a gauge for inflation at the wholesale level. It is seen as a leading indicator because traditionally producers pass on higher prices to their customers.

The Federal Reserve also keeps a close eye on inflation pressures, maintaining that that the recent spike will be transitory.

The PPI data comes just a day before the Fed Chair Jerome Powell is scheduled to hold a press conference following the June FOMC monetary policy meeting. All eyes will be on the Fed’s interpretation of the recent run-up in inflation numbers.

Gold was flat following the release of the data, with August Comex gold futures last trading at $1,867.40, up 0.08% on the day.  

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U.S. PPI beats expectations in May, gold price flat - Kitco NEWS
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