Gold Price Sees Moderate Price Action Following Mixed Inflation Data

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(Kitco News) – The gold market is experiencing little movement as future inflationary pressure remained subdued and producer prices rose relatively in line with expectations.

On Friday, the US Department of Labor said its producer price index (PPI) rose 0.1% in November, following a 0.3% increase in October; the data was in line with economists’ forecasts.

Core PPI, which excludes volatile food and energy costs, rose 0.1% last month, following a 0.1% increase in October. However, economists expected to see a 0.2% increase.

The gold market is not seeing much of a reaction to the latest inflation data. February gold futures last traded at $ 1,842.5, up 0.28% on the day.

Economists pay close attention to producer prices, as it is a leading indicator of consumer prices. Traditionally, companies pass the highest costs on to their customers.

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