As you know, producer prices are shifted to consumer prices and are reflected in inflation.
Gold is also down (-0.7%), which is not the most logical reaction to inflationary risks.
I would suggest that the reaction of gold is dictated by the expectation of higher rates. But there is a strange nuance: after the release of statistics, ten-year yields fell from 1.44% to 1.42%. As if the market, after the release of statistics, began to expect that the Fed would not curtail incentives.
Good question. I think mania or mild inadequacy. Or maybe there is an escape from risk in treasuries — everything is possible. The situation will become clear tomorrow after the Fed’s monetary policy meeting.
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