Gold prices in neutral territory eyeing $1,835 following slightly weaker U.S. PPI data

New York (Nov 9)  The gold market remains in striking distance of a critical resistance point but is not seeing much traction following slightly weaker than expected wholesale inflation pressures.

Tuesday, the U.S. Labor Department said its Producer Price Index (PPI) rose 0.6% in October following September’s rise of 0.5%; the data was in line with economists’ expectations.

The report said that annual inflation rose 8.6%, down slightly from expectations. Consensus forecasts called for 8.7%.

The gold market is not seeing much reaction to the latest inflation data. December gold futures last traded at $1828.1 an ounce, flat on the day. For some market analysts, $1,835 is the key level the gold market has to break to attract new bullish momentum.

Core PPI, which strips out volatile food and energy costs, rose 0.4% last month, following September’s increase of 0.2%. Economists were expecting to see a 0.5% rise.

KitcoNews