Gold Rallies on Geopolitical Risks and Fed Rate-Cut Bets
- Producer price index unexpectedly declined in December
- Geopolitical concerns from airstrikes boost haven demand
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Gold jumped the most in a month after soft US producer prices data amped up expectations of interest-rate cuts, while US-led airstrikes on Houthi rebel targets in Yemen stoked haven demand.
Prices paid to US producers unexpectedly fell in December for a third straight month, consistent with limited inflation at the wholesale level, Labor Department data showed Friday. The Houthi response to the US and UK airstrikes is “imminent,” a senior political leader and member of ruling party, Mohammed Ali Al-Houthi, said in a public speech.