Gold prices declined on May 13 as U.S. wholesale inflation reached its highest level since 2022. The U.S. Producer Price Index (PPI) for April surged 6% year-over-year. This reading significantly exceeded market expectations.
The report followed a strong Consumer Price Index reading. The data immediately lifted U.S. Treasury yields and the U.S. Dollar Index. Spot gold prices fell by as much as 1% following the release.
The inflation spike reinforced expectations that the Federal Reserve will maintain high interest rates for an extended period. Higher rates diminish the appeal of non-yielding assets like gold.