Gold (XAU/USD) extended its rally on Friday, trading in the $2,650s following the release of the University of Michigan’s preliminary Consumer Sentiment Index for October. The index fell to 68.9 from 70.1 in September, missing expectations of 70.8, indicating a weakening in consumer confidence.
This release came after data showed mixed results for U.S. factory prices. While U.S. Producer Price Index (PPI) data for September showed a 1.8% year-over-year (YoY) increase, higher than August’s 1.7% and above expectations of 1.6%, the monthly data revealed no change, falling short of the 0.1% forecast and the 0.2% increase in August. Core PPI rose 2.8% YoY, exceeding expectations, but its monthly figure slowed to 0.2%, in line with forecasts.
The muted reaction in gold prices to these mixed PPI figures kept the metal trading steady around $2,640, as the data did little to alter market expectations for the Federal Reserve’s next move.
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