Gold tests $3,900 as annual producer inflation reaches 6.5%

U.S. producer prices rose 6.5% over the 12 months through October, the biggest annual increase since November 2022, while spot gold tested resistance near $3,900 an ounce. Analysts cautioned that persistent inflation could keep pressure on the economy and weigh on the metal.

Today, 17:10· Money Talk· 103 reads

Gold tests $3,900 as annual producer inflation reaches 6.5%

The U.S. Labor Department said Friday that the headline Producer Price Index rose 0.3% in October, after September’s increase was revised to 1.4%. The monthly gain was below economists’ forecast of 0.4%, but the annual rate marked its highest level since a 7.4% rise in November 2022.

Core PPI, which excludes food and energy, increased 0.3% in October following a revised 0.8% gain in September, matching consensus forecasts. Core producer prices were up 4.9% over the past 12 months.

Gold initially gained modestly after the inflation report, then moved to test initial resistance. Spot gold last traded at $3,897.90 an ounce, up 0.57% on the day. Analysts said elevated producer prices point to inflation remaining persistently high in the foreseeable future, a risk that could leave gold struggling to build further momentum.

Gold tests $3,900 as annual producer inflation reaches 6.5%

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