September 12, 2025

Hold on to your hats! Gold prices saw a little jump recently, all thanks to some surprising news from the US producer price data. The Producer Price Index (PPI) for August came in lower than experts expected. This gave a big boost to hopes that the US Federal Reserve will cut interest rates soon. To be exact, spot gold rose by 0.1% to $3,645.04 an ounce. This came just after bullion had hit a sparkling record high of $3,673.95 on Tuesday. Meanwhile, gold futures for December delivery in the US also climbed 0.1% to $3,682.90. Why all this excitement? The PPI data showed that producer prices actually fell in August. This was because margins in trade services shrank, while goods prices grew only a little bit. Investors took this as a sign that inflation pressures might be easing. Now, all eyes are on the upcoming US Consumer Price Index (CPI) data. According to a Reuters poll, the CPI could rise by 0.3% in August, slightly more than the 0.2% increase seen in July. Year-on-year, CPI might jump to 2.9% in August from 2.7% in July. These numbers will be vital clues for the Fed’s next steps. The big event on the calendar is the Federal Reserve’s policy meeting next Wednesday. Traders have already priced in a 0.25% interest rate cut, with a small chance of a bigger 0.5% cut. Adding to the excitement, last week’s weaker-than-expected jobs report hinted that the US labor market is cooling down, increasing chances of easier money policies. Why does gold shine in this scenario? Because gold doesn’t pay interest, it tends to do better when rates are low. Lower interest rates make gold more attractive. Meanwhile, a political twist is brewing. US President Donald Trump’s administration is appealing a court ruling that halted the firing of Fed Governor Lisa Cook. Plus, Stephen Miran, a top White House economic adviser, is moving closer to becoming a Fed governor, showing Trump’s desire to shake things up at the central bank. And in other news, Poland made headlines by shooting down suspected Russian drones with help from NATO allies – a first in the war in Ukraine. Other metals are holding steady too: silver stayed at $41.13 an ounce, platinum jumped 0.5% to $1,392.55, and palladium rose 0.7% to $1,181.56. Keep watching the markets as the CPI data drops and the Fed meeting approaches – it’s a gold rush waiting to happen!

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Tags: Gold prices, Federal reserve, Interest rates, Producer price index, Inflation data, Us economy,