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10.09.202613:14:03UTC+00Gold Slides as Strong PPI Fuels Fed Rate Hike Bets

Gold slipped to around $4,350 an ounce on Thursday as traders ramped up bets on a Federal Reserve rate hike next week, following stronger-than-expected US producer price data. US PPI rose 0.4% in August, while annual producer inflation accelerated to 5.4%, surpassing the 5.3% consensus forecast. The increase was driven by a sharp rise in energy prices and clearer signs of cost pass-through across a broader range of sectors. The release coincided with a renewed rally in oil prices amid intensifying US-Iran strikes in the Middle East, leading investors to price in a probability of more than 70% for a Fed rate hike on September 16. At the same time, traders also increased wagers on further tightening by the ECB after the central bank delivered a widely expected rate increase and cautioned that inflation risks remain skewed to the upside.

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