Gold Falls On Higher PPI Data

CHICAGO, Aug. 12 (UrduPoint / Pakistan Point News - 12th Aug, 2023 ) --:Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday on slightly higher than expected rise in U.S. producer price index (PPI).

The most active gold contract for December delivery fell 2.30 U.S. dollars, or 0.12 percent, to close at 1,946.60 Dollars per ounce.

The U.S. Labor Department reported Friday that U.S. PPI, a measurement of inflation before hitting consumers, rose 0.3 percent in July month on month and 0.

8 percent year on year, following a 0.2-percent year-on-year increase in June, the lowest annual rise since August 2020.

Market analysts hold that U.S. wholesale prices rise in July still reflects an overall easing inflation trend.

Rising U.S. Dollar and Treasury yields also dampened gold.

The preliminary reading of the University of Michigan consumer sentiment index dropped to a reading of 71.2 in the first two weeks of August from 71.6 in July. Economists had predicted the index would come in at 71.3.