AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

8/14/2025: Gold falls after hot PPI

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold fell 0.7% to close above $3,335 after a hotter-than-expected PPI shifted the outlook for rate cuts from the Fed, boosting the dollar and Treasury yields. Silver lost 1.4% to finish under $40 an ounce.

The Producer Price Index for July jumped 0.9% to lift the 12-month rate of wholesale inflation from 2.4% to 3.3%, the highest in five months. Most of the increase occurred in goods directly affected by tariffs, especially food, signaling that higher consumer inflation is probably in the pipeline.

The data follows a relatively benign CPI report that prompted traders to speculate that the Fed could be inclined to cut interest rates by as much as 75 basis points this year, with a 50-point cut possible in September. Those hopes have largely been dashed.

Fed fund futures traders put the odds of a quarter-point rate cut in September at 93%, virtually unchanged, while the odds of a second cut in October have fallen to 54% from 66% yesterday. The chance of a third cut in December has dropped to 40% from 55% yesterday.

Benchmark 10-year Treasury yields rose to 4.3% on the shifting rate view, pressuring gold by increasing the opportunity cost for holding it instead of bond for safety,

Tracking with yields, the dollar added 0.4% against major rivals. A stronger dollar weighs on gold and other commodities by making them pricier in other currencies.

Platinum and palladium rose 1.5% and 1.2%, respectively.

At the New York spot close: gold dropped $23.50 to $3,335.20; silver shed 52 cents to $37.98; platinum picked up $19.90 to $1,356.85; and palladium rose $14.20 to $1,150.65 an ounce.