Gold prices at daily highs after 0.2% drop in the US PPI

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Editor’s Note: Find yourself in minutes with our quick summary of today’s must-see news and expert opinions that have moved precious metals and the financial markets. Register here!(Kitco News) Gold prices hit daily highs, with the US Producer Price Index (PPI) below expectations in June, down 0.2%.
Market consensus predicted an increase of at least 0.4% on a monthly basis.
The annual PPI also disappointed market forecasts, falling 0.8% from the expected 0.2% drop in June, the US Department of Labor said on Friday.
Core inflation, which removes volatility in food and energy prices, fell 0.3% in June amid sluggish demand due to the COVID-19 pandemic. Core annual inflation accelerated only 0.1% against the 0.4% expected after the 0.3% increase in May.
Gold prices hit daily highs in response to data as the August Comex gold futures contract traded at $ 1,815.50, up 0.65% on the day .
Market players pay particular attention to the PPI as an indicator of wholesale inflation. It is considered a leading indicator because producers traditionally pass on higher prices to their customers.
The Federal Reserve also constantly monitors inflationary pressures, particularly when it makes decisions about future rate movements.

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