Spot gold slips to $4340/oz as August PPI climbs 0.4%

Gold prices fell after U.S. producers reported higher costs last month. The PPI rose 0.4% in August while core PPI gained 0.2%, matching forecasts. Year-over-year headline inflation reached 5.4% and core stood at 4.6%.

Spot gold dropped to $4340.78, down 1.39% on the day. Analysts link the move to fresh inflation concerns and possible Fed rate action.

Economists Jeffrey Roach and Chris Zaccarelli said China has stopped exporting deflation and that tomorrow’s CPI release will be critical ahead of next week’s Fed meeting.