Sharp Decline in Gold Prices Following US Producer Inflation Data
Following the rise of annual producer inflation in the US to 5.4% and the ECB's rate hike, spot gold fell to $4,328 and gram gold dropped to 6,759 liras.
The US producer price index rose to 5.4% annually in August, and following this critical data release, a noticeable decline was recorded in spot and gram gold prices.
Producer Inflation Rises in the US
In the United States, the producer price index rose to an annual rate of 5.4% in August. On a monthly basis, producer inflation showed an increase of 0.4%.
Sharp Drop in Spot and Gram Gold
Immediately after the data was released, markets experienced volatility and gold prices declined. Spot gold dropped 1.70% to $4,328, while gram gold fell to 6,759 liras.
ECB Decision and Market Expectations
The European Central Bank's decision to raise interest rates by 25 basis points also played a role in the volatility of gold prices. Markets are now focusing on the US consumer price index data to be released tomorrow.