Metals Minute 151: PPI Comes in Hot

The top story today is the PPI (Producer Price Index) has come in at 8.5% YOY for September, higher than the 8.4% expected. The MOM (month-over-month) increase was 0.4%, twice as much as expected (0.2%). Core PPI was 7.2% YOY and 0.3% MOM, slightly lower than the previous month and more aligned with expectations.

“Core” PPI does not include food and energy costs, but food and energy are some of the most important and necessary costs to the average American family. For example, the cost of produce/vegetables and fruit is up 15.7%. Higher overall PPI readings suggest that inflation is still a concern going forward, solidifying projections of future interest rate increases by the Federal Reserve.

For the week, gold is down 2.3% to $1,680, silver is off 5.8% to $19.38, platinum is down 3.2% to $910, and palladium is down 6.5% to $2,181. Looking back a year ago, gold is down 4.5%, silver is down 14%, platinum is down 10%, and palladium is up 6%.

YTD, the composite of precious metals above is down 2%, relative stability vs. stocks, bonds, and real estate.