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(Kitco News) – Gold prices hold session highs as the inflationary threat in the United States continues to grow as producers feel the heat.
On Wednesday, the US Department of Labor said its producer price index (PPI) rose 1% in June from 0.8% in May; the data was stronger than expected, with economists forecasting a 0.6% increase.
For the year, producer prices rose 7.3%, the largest increase since 12-month data were first calculated in November 2010.
The report says staple producer prices also rose 1% last month, up from 0.7% in May. Economists expected a 0.5% increase in headline inflation.
Gold prices maintained strong gains before the last inflation report and added to those gains in the initial reaction. August gold futures traded for the last time at $ 1,829.20 an ounce, up 1% on the day.
Economists pay particular attention to producer prices because it is a leading indicator of consumer prices. Traditionally, companies pass the higher costs on to their customers.
Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.
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