Key Points
(Reuters) Gold slid on Thursday after a larger than expected rise in Februarys U.S. producer price index (PPI) cooled expectations of early rate cuts by the Federal Reserve, boosting Treasury yields and the dollar...
The dollar gained 0.3% against its rivals, making gold less attractive for other currency holders, while benchmark U.S. 10-year note yields rose to a more than one-week high..
I expect to see continued pressure (on gold), with all of the data showing the U.S. economy is strong, the labor market still strong, said Chris Gaffney, president of world markets at EverBank...
U.S. producer prices increased more than expected in February amid a surge in the cost of goods like gasoline and food, which could fan fears that inflation is picking up again...
However, traders continue to bet on interest rate cuts in June, pricing in about a 64% chance compared to 72% before the CPI data earlier this week, according to the CME Groups FedWatch Tool...
