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Gold slips as hot US PPI and $100 oil lift rate expectations

Gold retraced about 0.9% after US PPI showed an annual increase that slightly topped expectations, while WTI cleared $100 a barrel and Treasury yields rose.

Reported · Written up by our desk · Precious Metals

Gold fell about 0.9% on Thursday, with traders citing a shift toward a more hawkish Federal Reserve as US Producer Price Index inflation figures landed. FXStreet said the move reflects broader risk-off sentiment and pressure on the dollar-denominated metal.

The US PPI for August showed 0.4% month-over-month, in line with forecasts, while the annual rate rose to 5.4%, slightly above the expected 5.3%. FXStreet also noted that the core monthly increase was 0.2%, below the estimated 0.3%, and the core yearly figure was 4.6%, as expected.

Energy prices added to the pressure, with Brent and WTI rising above $100 per barrel. FXStreet reported WTI cleared the $100 level for the first time since mid-May, alongside a move higher in Treasury yields, with the 10-year benchmark note up nearly 7 basis points to 4.93%.

The US Dollar Index rose about 0.2% to 98.99, weighing on gold, FXStreet added, as traders looked ahead to Friday’s Consumer Price Index release. The outlet said money markets see nearly a 70% chance the Fed raises rates by 25 basis points at next week’s meeting, based on the CME FedWatch Tool.

Latest closeGold $4,445.30 ▲1.2%|WTI crude $97.01 ▲4.3%|Brent $102.05 ▲4.2%

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