Walter Pehowich is off today. The insights were prepared by a senior analyst.
It appears, Gold feels comfy just under $1,200. The overhanging concerns over tariffs combined with the strong U.S. Dollar are keeping the yellow metal in the just-under-$1,200 neighborhood. There have been some indication of bargain hunting, but not enough to give a significant boost.
There was a little movement this morning when the U.S. Producer Price Index (PPI) numbers were released. Gold got a bit of a bounce when the PPI for August fell about .1%, which was below expectations. Economists were predicting a .2% increase. This was the first decline for the PPI in 18 months.
The annual PPI was also lower than expected, hitting 2.8% instead of the expected 3.2%, while annual core inflation came in at 2.3%, lower than the 2.7% consensus forecasts. Any ammunition for the FED to NOT raise interest rates is always welcome in the Gold market.
Checking in with Gold’s little sister, Silver dropped yesterday to its lowest point in 2.5 years, challenging the $14 threshold. This created the highest Gold-Silver ratio in over 20 years, at just shy of 85, far above 50 which is the historical average.
Have a wonderful Wednesday
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