Gold fell sharply in the early New York session yesterday (Thursday) as the US Bureau of Labor Statistics (BLS) reported that the Producer Price Index (PPI) was warmer than expected for February.
The yellow metal is under pressure as lingering inflation concerns deepen.
The price of gold is now at $2,164.93 which is up by 0.14% since the opening of trading this morning.
Meanwhile, US February inflation data released last Tuesday showed surprising results than expected. The same trend from the PPI data has increased market uncertainty regarding the Fed's expected interest rate cut in June.
This has also caused the yield on the 10-year US Treasury bond higher to 4.28% and caused a sharp increase in the gold market.
The US Dollar Index (DXY) rose to 103.10 points and beat the yellow metal market this week.
Additionally, the US Census Bureau has reported that Retail Sales grew more slowly than market expectations. This will provide a clearer direction for gold prices such as interest rate forecasts and economic data that move the market.
The final dot plot released in the December meeting predicted three rate cuts this year due to a strengthening US Dollar (USD) and high bond yields.
