Slower wholesale inflation data brought brief relief after U.S. producer prices rose 0.3%, coming in marginally below market projections. Despite this, persistent concerns over elevated consumer prices and rising oil markets kept expectations high for a 25-basis-point interest rate increase in December. The metal had already plumbed a more-than-one-year low following a 3% tumble on Thursday, while sister commodities including silver and platinum also saw broad weekly declines.
Key points
Heightened expectations for restrictive Federal Reserve interest rate policy continue to…: Heightened expectations for restrictive Federal Reserve interest rate policy continue to diminish demand for non-yielding bullion.
Milder producer price data helped reduce the likelihood of a larger 50-basis-point moneta…: Milder producer price data helped reduce the likelihood of a larger 50-basis-point monetary policy tightening to 8.6%.
Widespread selling across precious metals reflects broad macroeconomic pressure stemming…: Widespread selling across precious metals reflects broad macroeconomic pressure stemming from stubborn inflation figures and firming energy markets.
Sources checked by our analysis pipeline: 1
* US PPI for final demand rose 0.3% last month
* Spot gold down about 4.5% this week, the most since early June
* Silver, platinum and palladium also head for weekly declines
(Updates prices for US closing hours)
By Anjana Anil
Nov 13 (Reuters) - Gold firmed on Friday as a largely in-line US inflation reading alleviated some bets on a bigger rate hike, but Thursday’s selloff to a more-than-a-year low kept bullion on track for a weekly decline.
Spot gold ticked up 0.1% at $3,879.71 per ounce as of 2:05 p.m. ET (1905 GMT), after briefly touching a session high of $3,922.97 when the US Producer Price Index data came out.
US gold futures for December delivery settled largely unchanged at $3,886.30 per ounce.
The Producer Price Index for final demand rose 0.3% last month, after an upwardly revised 1.4% surge in September, data showed on Friday. A Reuters poll had forecast PPI climbing 0.4%.
"Gold is struggling to hold initial gains from PPI as bond markets continue to struggle, confronted with Fed hawkishness," independent analyst Tai Wong…
The unexpected resignation of Jensen Huang following scrutiny over his ties to a suspected Chinese spy has rattled confidence across artificial intelligence markets. At the same time, an aggressive jump in producer prices is forcing investors to brace for continued Federal Reserve policy tightening. These compounding headwinds triggered widespread equity selling, hit semiconductor valuations, and unsettled upcoming market debuts.
Jensen Huang's unexpected departure left a leadership vacuum and sparked regulatory scrutiny, driving the chipmaker's shares down roughly 30% into the $160 range. However, the resulting spike in implied volatility has inflated options premiums, giving investors a practical mechanism to monetize the prolonged turbulence. By deploying covered calls, market participants can construct a downside buffer while retaining exposure to the firm's foundational artificial intelligence advantages.
Market participants are closely watching shares of the company as trading pressure mounts during the current session. Additional information regarding the specific drivers behind the movement remains limited based on the initial market reports. Investors are currently awaiting further details to understand the broader implications of this sudden shift.