Commodities
Gold Price Sinks After Producer Prices Surprise
The gold price fell to $4,365.50 an ounce after reversing $68.50 from an intraday high of $4,434 on Thursday following the release of August producer prices.
Gold has now traded either side of $4,400 for three weeks without resolving in either direction, and its price is a function of real yields and the dollar.
The 5.4% inflation print raised the probability that the Federal Reserve tightens, causing nominal yields to rise faster than inflation expectations and real yields to increase, resulting in a decline in gold's price.