Gold prices ticked down as producer inflation pressures in the U.S. met expectations for September.
Producer Price Index (PPI) rose 0.4% last month following an increase of 0.2% in August, the U.S. Labor Department said on Thursday. According to consensus forecasts, economists were expecting to an increase of 0.4%.
The annual PPI advanced to 2.6% in September, which marked the quickest pace in over five years and beat economists’ expectations of 2.5%.
Core inflation, which strips out volatile food and energy prices was up 0.2% in September, the same as in August. Annual core inflation came in at 2.1%, beating market consensus forecasts of 2%.
Immediately after the release, gold edged down, with December Comex gold futures last seen trading at $1,294.90 an ounce, up 0.47% on the day. Prior to the release gold prices hit a two-week high in pre-U.S. session trading.