According to the recent producer price index report, which was published today,
the PPI for finished goods in increased by 0.3% November compared to October.
This report also serves as an indicator for the upcoming U.S core CPI to be
published tomorrow, December 16th. The food index sharply rose by 1% during
November; while the energy index only slightly inclined by 0.1% during the
month. On an annual scale, the PPI inclined by 5.7% during the past 12 months
The Producer Price index excluding food and energy slightly rose by 0.1% during
November. This PPI ex food and energy is estimated to have a lagged negative
linear correlation with gold price; i.e. as the PPI rises, gold price tends to
decline the following day. Furthermore, the PPI excluding food and energy has a
positive linear correlation with silver price. These relations are mainly via
the changes in U.S dollar.
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