Gold and Silver Prices Crash Amid Hot Producer Price Data and Rate-Hike Bets

Gold and silver futures plummeted on Thursday following hot producer price data that fueled rate-hike bets. The Producer Price Index for final demand rose 0.4% last month after a revised 0.1% gain in July, with the PPI advancing 5.4% over the past 12 months through August.

The Labor Department's Bureau of Labor Statistics reported that energy prices jumped 4.2% and diesel prices surged 24.1% over the month, with Brent crude oil hitting $105/bbl on Thursday.

'This report points to cost increases in the pipeline and will support the case of those on the [Federal Open Market] Committee who want to hike rates now,' High Frequency Economics chief economist Carl Weinberg said.