World gold prices fell after the US's key inflation report released results that were much higher than expected.
The US producer price index (PPI) in July increased by 0.9% compared to the previous month, much higher than the flat level in June and far exceeding the forecast of 0.2%. This is the strongest increase since June 2022.
This report reinforces the view of the "hawks" in US monetary policy, who do not want the US Federal Reserve (FED) to cut interest rates soon. Compared to the same period last year, the total PPI increased by 3.3% - the highest level in 5 months and exceeded the forecast of 2.5%. Core PPI (excluding food and energy) also increased by 0.9%, higher than the forecast of 0.2%.
On a year-on-year basis, the core PPI increased by 3.7% compared to the previous 2.6%. Hotter-than-expected PPI data in July only slightly reduced the chances of a 25 basis point Fed rate cut in September, but all but eliminated the possibility of a 50 basis point cut that a few investors had previously expected.
The US producer price index (PPI) in July increased by 0.9% compared to the previous month, much higher than the flat level in June and far exceeding the forecast of 0.2%. This is the strongest increase since June 2022.
This report reinforces the view of the "hawks" in US monetary policy, who do not want the US Federal Reserve (FED) to cut interest rates soon. Compared to the same period last year, the total PPI increased by 3.3% - the highest level in 5 months and exceeded the forecast of 2.5%. Core PPI (excluding food and energy) also increased by 0.9%, higher than the forecast of 0.2%.
On a year-on-year basis, the core PPI increased by 3.7% compared to the previous 2.6%. Hotter-than-expected PPI data in July only slightly reduced the chances of a 25 basis point Fed rate cut in September, but all but eliminated the possibility of a 50 basis point cut that a few investors had previously expected.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.