Gold Prices Plummet Amid Rising Producer Prices and Core Inflation

The gold market has seen a significant drop in prices following the release of important data from the US Department of Labor. The overall producer price index (PPI) increased by 0.4% in August, which is consistent with forecasts.

The data showed that total wholesale price inflation rose to 5.4% over the past 12 months, higher than expected. Core PPI, excluding volatile food and energy costs, increased by 0.2% in August, lower than predicted.

As a result of this data, gold prices immediately reversed and sharply decreased after being announced at 8:30 am US Eastern time (ET). Analysts believe that a stable labor market creates more room for the US Federal Reserve to raise interest rates, putting pressure on gold prices.

In Vietnam, gold ring prices have remained unchanged compared to the closing session yesterday. However, SJC gold bar prices at Bao Tin Minh Chau saw a larger decrease of 3 million VND/tael after one week. DOJI listed the price of gold rings at 144-148 million VND/tael (buying - selling), with a buying-selling difference of 4 million VND/tael.