Gold Prices Slip After US PPI Data Shows No Inflation Pickup

Gold prices took a hit after the release of the US Producer Price Index (PPI) data, which showed no pickup in inflationary pressure. The PPI, a measure of underlying inflation pressures, was unchanged for the month of July, following a decline of 0.1% in June.

The Bureau of Labor Statistics reported that wholesale costs for goods and services were flat in July, marking another positive sign for inflation. This news sent gold prices slipping, with spot gold falling 0.5% to $4,382 an ounce.

Despite the setbacks, analysts believe that gold is still poised to resume its bull run once geopolitics favor it as a safe haven again. For now, the market appears to be taking profits after a stellar run, with independent analyst Ross Norman stating, 'Arguably the market was over-positioned ahead of soft inflation data, having bought the rumor, it is now selling the fact.'