Gold tumbles after PPI
Investors sold off gold after the U.S. core producer-price index came in hotter than expected, sending bullion sharply lower as traders cut allocations and commodity-linked funds were hit. (coingape.com). That pullback clashes with analyst forecasts that gold should hold as a safe haven amid geopolitical risk — markets are wrestling between hotter inflation data and safe-haven demand. (litefinance.org)
The U.S. Bureau of Labor Statistics reported the Producer Price Index for final demand rose 0.7% month‑over‑month in February 2026, while the index for final demand less foods, energy, and trade services (core PPI) increased 0.5% month‑over‑month. (bls.gov) On the market reaction, spot gold slid roughly 3.2% to $4,843.53 per ounce in New York trading, marking its sixth consecutive daily decline. (bloomberg.com) Midday futures showed April gold down about $129 to near $4,879 an ounce, a move that pushed bullion to a multi‑week low during the session. (kitco.com) The U.S. Dollar Index strengthened to about 99.84, rising roughly 0.29% after the PPI release, putting additional pressure on dollar‑priced commodities. (fxstreet.com) Longer‑dated real rates moved higher too: the 10‑year Treasury yield climbed into the low‑4% range and was reported around 4.27% on the day, tightening financial conditions for interest‑rate‑sensitive assets. (tradingeconomics.com) Markets pared expectations for 2026 rate cuts after the print, with swaps and fed‑funds futures pricing in materially less easing and the implied Fed‑rate path shifting lower in intraday trading. (fxstreet.com) Bloomberg and other outlets noted a cross‑asset reshuffle—some investors sold gold to raise cash—which intensified outflows from commodity‑linked vehicles during the session. (bloomberg.com) Attention moved quickly to Federal Reserve commentary and projections, with traders awaiting Chair Jerome Powell’s press conference and the Fed’s updated economic projections for guidance on the timing of any future cuts. (kitco.com)
