Gold Drifts Lower On Tame PPI
Gold prices dropped for a third session Wednesday, as data showed U.S. inflation remains tame.
Dec. gold fell $4.70, or 0.4%, to settle at $1,328/oz.
Producer prices in the U.S. rose by slightly less than expected in the month of August, according to a report released by the Labor Department on Wednesday.
The Labor Department said its producer price index for final demand edged up by 0.2 percent in August after slipping by 0.1 percent in July. Economists had expected the index to climb by 0.3 percent.
The increase in producer prices was partly due to a jump in energy prices, which surged up by 3.3 percent in August after falling by 0.3 percent in the previous month. Prices for gasoline spiked by 2.9 percent.
On Thursday, the Labor Department is scheduled to release a separate report on consumer prices in the month of August. Consumer prices are expected to rise by 0.3 percent.
The UK jobless rate dropped to its lowest level in 42 years and wage growth remained subdued during the three months ended July, official data showed Wednesday.
The jobless rate fell to 4.3 percent, the lowest since 1975, the Office for National Statistics said. Economists had forecast the rate to remain unchanged at 4.4 percent.