Gold Prices Plummet After August's Producer Price Index Rises 0.4%

The gold market took a hit after August's Producer Price Index (PPI) data showed a 0.4% increase, in line with expectations.

According to the U.S. Labor Department, this marks the third consecutive monthly rise for the headline PPI, and the second straight month of core inflation exceeding expectations.

The August core PPI reading came in at 0.2%, below economists' 0.3% consensus forecast, but still above July's upwardly revised 4.3% print.

Gold prices plummeted immediately following the data release, with spot gold last trading at $4,340.78 for a loss of 1.39% on the day.