Gold prices are seeing little reaction but remain under pressure as inflation pressures remain elusive in the U.S. economy.
Gold prices were under modest selling pressure ahead of the report and remain relatively unchanged in initial reaction. The market continues to stubbornly hold just below $1,300 an ounce. February gold futures last traded at $1,289.80 an ounce, down 0.12% on the day.
Tuesday, the U.S. Labor Department said its Producer Price Index (PPI) fell 0.2% in December following a 0.1% rise in November. According to consensus forecasts, economists were expecting to see a drop of 0.1% for the month.
Stripping out volatile inflation pressures, core PPI fell 0.1%, following November's rise of 0.3%. Consensus forecast were calling for a 0.2% rise.