Gold futures prices fell on Thursday (13th), closing lower for the first time in five trading days, as the US December producer price index (PPI) was lower than market expectations.
Craig Erlam, senior market analyst at OANDA, said: “It’s fair to say that bulls are looking at gold’s safe-haven qualities, especially given the recent perception of the seriousness of the situation by central banks, but inflation now looks likely to be near its peak, which may not be the case. continue.”
“Having said that, concerns regarding Fed tightening may also peak, which will support gold in the short term if it breaks above 1833 Dollarmight signal further gains. “
US wholesale prices rose 0.2% in December, the smallest gain in 13 months, perhaps a sign that high inflation is finally starting to slow following approaching a 40-year high.
The increase was also lower than expected, with economists expecting a 0.4% rise in the PPI in December, according to a Wall Street Journal survey. In addition, the annual growth rate of wholesale prices in December also fell to 9.7% from 9.8% in the previous month, the first decline since the early days of the outbreak.
Data released a few days ago showed that the U.S. consumer price index (CPI) rose by 0.5% in December, bringing the cost of living increase to 7% last year, a near 40-year high, strengthening the market’s idea that high inflation will continue in 2022.
Gold has always been seen as a hedge once morest inflation, but in the post-pandemic period, supply chain bottlenecks and consumer demand recovers, prices of goods and services have soared, and this situation may also force the Fed to accelerate rate hikes this year. It may put pressure on precious metal prices.
- Gold futures for February delivery fell 5.90 Dollaror 0.3 percent, to settle at 1821.40 an ounce Dollar。
Gold rose 0.5% on Wednesday, closing higher for the fourth day in a row, the longest rising day on record following a seven-day winning streak ended November 12 last year, and the most actively traded gold futures since December 31. The highest closing price .
Still, gold is relatively resilient in an environment where borrowing costs and the prospect of rising inflation have roiled financial markets.
Other Metal Commodities Trading
- Silver futures for March delivery fell 5 cents, or 0.2%, to settle at 23.162 an ounce Dollar。
- Platinum futures for April delivery fell 0.8% to settle at 972.20 an ounce Dollar。
- Palladium futures for March delivery fell nearly 1.4% to settle at 1,890 an ounce Dollar。
- Copper for March delivery fell 0.7% to settle at 4.546 a pound Dollar。
