According to the recent producer price index report, which was published today, the PPI for finished goods in increased by 0.3% November compared to October.
This report also serves as an indicator for the upcoming U.S core CPI to be published tomorrow, December 16th.
The food index sharply rose by 1% during November; while the energy index only slightly inclined by 0.1% during the month. On an annual scale, the PPI inclined by 5.7% during the past 12 months
The Producer Price index excluding food and energy slightly rose by 0.1% during November.
This PPI ex food and energy is estimated to have a lagged negative linear correlation with gold price; i.e. as the PPI rises, gold price tends to decline the following day. Furthermore, the PPI excluding food and energy has a positive linear correlation with silver price. These relations are mainly via the changes in U.S dollar. If this relation will also hold up, this news of the PPI inclining might affect gold price to slightly decline and silver price to moderately increase.
Currently the gold and silver prices are traded slightly down:
Current gold price, short term futures (January 2012 delivery) is traded at $1,574.9 per t oz. a $12 decrease as of 16:58*.
Current silver price, short term futures (January 2012 delivery) is traded at $28.920 per t oz. a $0.015 decrease as of 16:59*.
Euros to US dollar exchange rate is currently traded up at 1.3020 a 0.2863% increase as of 17:07*.
(* GMT)
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