WASHINGTON (dpa-AFX) - After moving notably lower over the past few sessions, the price of gold has shown a strong move back to the upside during trading on Thursday.
Gold for December delivery has jumped $69.40 or 1.7 percent to $4,177.30 an ounce after tumbling by 2.5 percent over the past three trading days.
The price of gold has benefitted from weakness in the value of the U.S. dollar, with the U.S. dollar index falling by 0.5 percent on the day.
A steep drop by treasury yields is also contributing to the rebound by gold prices, as traders seemingly shrug off a Labor Department report showing much stronger than expected producer price growth.
The yield on the benchmark ten-year note has slumped by more than 10 basis points, extending the significant pullback seen over the previous session.
Yields are moving sharply lower even though the Labor Department said its producer price index for final demand jumped by 1.3 in September compared to economist estimates for a 0.5 percent increase.
The report also said the annual rate of growth by producer prices surged to 6.3 percent in September from an upwardly revised 5.6 percent in August, coming in well above expectations.
Despite the hotter-than-expected inflation data released over the past two days, CME Group's FedWatch Tool suggests the Federal Reserve is still likely to leave rates unchanged later this month.
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