Daily digest market movers: Gold price flatlines post US PPI
- June US Producer Price Index (PPI) increased by 0.2% MoM, exceeding the expected 0.1% and higher than May's 0%. Core PPI rose by 0.4% MoM, surpassing the forecast of 0.2%.
- On an annual basis, PPI ticked up from 2.4% to 2.6%, beating the forecast of 2.3%. Underlying inflation increased to 3%, up from 2.6%.
- UoM Consumer Sentiment dropped from 68.2 in June to 66.0 in July. Inflation expectations for one year were as expected at 2.9%, down from 3%.
- US Dollar Index (DXY), which tracks the value of a basket of six currencies against the US Dollar, fell more than 0.30% to 104.12.
- According to the CME FedWatch Tool, the odds of a September rate cut are 88%, up from 85% on Thursday.
- December 2024 fed funds rate futures contract implies that the Fed will ease policy by 49 basis points (bps) toward the end of the year, up from 39 a day ago.
- Bullion prices retreated slightly due to the People's Bank of China (PBoC) decision to halt gold purchases in June, as it did in May. By the end of June, China held 72.80 million troy ounces of the precious metal
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