GOLD PRICE NEWS – The gold price, at $1,785 per ounce, traded near unchanged Wednesday following the news that producer prices rose more than anticipated. The price of gold showed a muted reaction to the release of the Producer Price Index (PPI), which rose 0.2% month over month and 7.2% year over year – both slightly hotter than a Bloomberg survey of economists. Commodities moved higher across the board with crude oil rising 1.5% to $87.99 per barrel and copper advancing 0.6% to $4.04 per pound. Silver rose above $40, climbing $0.15 to $40.05 per ounce.
On Tuesday, the gold price rallied $18.59 to $1,784.89 per ounce amid the return of risk aversion. The price of gold briefly dropped to $1,766 in morning trading, but rebounded well into positive territory as trading progressed. COMEX gold futures, per the December contract, settled at $1,785 per ounce, a new all-time high on a closing basis. However, gold futures remained below their intra-day record high of $1,817.60, reached last Thursday. Silver moved higher in concert with the gold price. With their gains, the price of gold and silver extended their year-to-date returns to 25.6% and 29.3%, respectively.
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