If this month’s rally caught you on the left foot, there’s a window of opportunity open now that you won’t want to miss. The latest PPI report (issued by the Bureau of Labor Statistics earlier this week) has put some air in the sales of the dollar index, giving it a surge of momentum and causing gold prices to dip a little.
The PPI data revealed a 0.6% increase in the January price index, leading to a 1.6% year-on-year increase in the overall cost to consumers. This data could point to inflation spiking, which may impact the timing of rate cuts. The first cut isn’t expected to take place until the summer, so these figures have no immediate bearing on Federal Reserve actions but, the worry was enough to increase Treasury Yields and therefore, boost the dollar index.
Gold prices, which have been riding a wave all month, fell back a little under the dollar pressure, with a drop of £10.11 ($12.90) or 0.59% recorded during Thursday trading, which has been retraced early on Friday morning with gold sitting at £1,700 at time of print. With prices hitting record highs this month, any pullback represents a clear buying opportunity. Don’t miss your chance.
