WASHINGTON (dpa-AFX) - Gold prices fell on Thursday despite dollar weakness and ongoing tariffs helping gold on the upside, as US data showed hotter-than-expected inflation and a resilient labor market.
Front Month Comex Gold for August delivery fell by $23.50 (or 0.70%) to $3,335.20 per troy ounce today.
Front Month Comex Silver for August deliver slumped by 51.70 cents (or 1.34%) to $37.982 per troy ounce today.
The much-awaited PPI data released by the US Labor Department today exceeded forecasts.
The producer prices rose 0.9% month-on-month in July (in actual numbers, increasing to 149.67 points in July from 148.27 in June). Year-on-year, prices surged by 3.3%.
Core producer prices, which exclude food and energy, rose by 0.9% in July after being flat in June and increased 3.7% year-on-year.
Labor Department data revealed that initial jobless claims eased by 3,000 from the previous week to 224,000 in the week ended August 9.
Continuing claims eased by 15,000, from the over-three-year high in the prior week, to 1.953,000 in the week ending August 2 from 1.968 million in previous week.
These numbers reflect a robust job market but with slow activity in hiring.
With the next FOMC meeting scheduled to begin in 34 days, investors remain confident of a rate cut but have scaled back their level of expectation.
The benchmark lending rates are currently at 4.25% to 4.50% which has earned the displeasure of President Donald Trump, who wants a rate cut to boost the economy.
This Friday, Trump and Russian President Vladimir Putin are set to meet in Alaska to discuss ways to resolve to the three-plus-year old Russia-Ukraine conflict.
Trump has already warned that there will be severe consequences if Putin dissents to stop the war following the summit.
US Treasury Secretary Scott Bessent has also warned that if talks do not go well with Russia, the tariffs imposed on India for purchasing Russian oil may go up.
Traders feel that the outcome of this high-profile meeting tomorrow shall drive commodity and financial markets for the next few days.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
