Daily Gold Commentary | Bulls Hold Slight Advantage in the Short Term

On the fundamentals, the latest data released by the U.S. Bureau of Labor Statistics shows that the wholesale price increase in the U.S. for April has significantly exceeded expectations, not only reaching its highest level since 2022, but also further intensifying financial market concerns about the persistence of inflation. Against the backdrop of global geopolitical turmoil triggering energy fluctuations, the trajectory of U.S. inflation faces new uncertainties.

The U.S. Producer Price Index (PPI) growth rate for April surged to 6% year-on-year, surpassing all economists’ expectations surveyed by Bloomberg and marking the largest monthly increase in nearly two years. Excluding the more volatile food and energy sectors, the core PPI rose 5.2% year-on-year in April, recording the strongest performance in over three years.

Market expectations for the Federal Reserve to maintain high interest rates have intensified again, with yields on U.S. Treasuries generally rising across all maturities. The yield on the benchmark 10-year U.S. Treasury increased by about 2 basis points, reaching 4.49%, the highest level since July last year. Investors are widely concerned that if wholesale energy and logistics pressures do not ease, companies will inevitably pass on higher costs to end consumers to hedge against shrinking profits.

Editor | Jiao Yang   Layout | Jiao Yang   Visuals | Zhang Zongwei