Gold traders eye US PPI, China GDP after softer inflation shifts Fed outlook
Investors turned their attention to key economic data due later on Wednesday after weaker U.S. inflation figures prompted markets to reassess the Federal Reserve’s interest-rate trajectory. A clearer picture of inflation is expected from the U.S. Producer Price Index (PPI), while China’s second-quarter GDP, retail sales and other economic indicators are also in focus.
Federal Reserve officials welcomed the latest cooling in consumer inflation but cautioned that more evidence would be needed before concluding that price pressures were easing sustainably.
Analysts are also closely watching China’s economic performance, with growth expected to slow towards the lower end of Beijing’s annual target, potentially weighing on demand from one of the world’s largest gold consumers.
On the supply front, Ghana’s Gold Board said output from artisanal and small-scale mining was on track to match or exceed last year’s record production, while South Africa reported a 5.4% year-on-year decline in mining output in May. Among other precious metals, spot silver rose 0.4% to $58.86 per ounce, platinum gained 0.3% to $1,636.28, while palladium edged 0.1% lower to $1,304.10. Citi Research maintained its short-term price targets of $1,950 an ounce for platinum and $1,500 an ounce for palladium.
