Gold price remain under significant pressure as PPI inflation rises less than expected

NEW YORK (Mar 15)  Gold prices remain under significant selling pressure even as inflation pressure continue to rise, albeit at a slower pace than expected.

Wednesday, the U.S. Labor Department said its Producer Price Index (PPI) rose 0.8% in February following January’s rise of 1.0%; the data was weaker than expected with economists' forecasting an increase of 1.0%.

At the same time, core inflation, which strips out energy and food costs  rose 0.2% last month, compared to a 0.8% rise in February. Economists were expecting to see a 0.6% rise.

The inflation data is having little impact on gold as the precious metal continues to face a potential rise in interest rates. April gold futures last traded at $1,923.60 an ounce, down nearly 2% on the day.

KITCO