The United States has released its producer price index (PPI) data, greatly influencing market movements during trading on Friday (April 11, 2025).
The PPI for March has reported a growth of 2.8% year-on-year (YoY), which is lower than the forecast of 3.3% YoY as predicted by Trading Central.
Recommended
Recommended
Recommended
Recommended
Meanwhile, the core PPI, which excludes the volatile sectors of energy and food, showed an increase of 3.3% YoY, which also falls short of the anticipated 3.5%.
Following this report, gold prices surged to approximately $3,230 per troy ounce, approaching the all-time high of $3,237 per troy ounce.
The decline in the PPI reinforces expectations that the Federal Reserve may reduce interest rates sooner than anticipated. Market participants are now speculating on a potential interest rate cut in June, following the inflation data (Consumer Price Index/CPI) which indicates a slowdown in growth.
This data release enhances positive sentiment for gold, which has already been buoyed by the escalating trade tensions between the US and China.
On the other side, the US dollar is facing increasing pressure, as reflected by the rising EUR/USD and GBP/USD pairs, while the USD/JPY shows a downward trend.
