Gold Holds Above $4,100 Despite US Producer Prices Surging 6.3% in September

Gold is keeping its overnight gains above the $4,100 mark even as fresh inflation concerns cap further advances. The US Producer Price Index surged 1.3% in September, well above the 0.6% forecast, with the annual rate reaching 6.3%. Core PPI, excluding food and energy, climbed 0.7% last month and 5.0% over the year. The report follows the previous day’s 3.7% annual CPI reading. Persistent price pressures raise the opportunity cost of holding gold, yet some see them as a potential tailwind if markets doubt the Fed’s ability to tame inflation. Head of Risk at Monaxa Artem Bakushev said producer prices eliminated hopes that the hot CPI was a one-off and left the Fed’s disinflation narrative in ruins.