Gold price catches a bid as U.S. PPI rises 0.5% in March

Gold firmed after softer-than-expected U.S. PPI reinforced the disinflation narrative and gave the metal room to extend its bid, with spot gold last at $4,774.60/oz, up 0.73% on the day. March headline PPI rose 0.5% m/m, matching February’s revised pace but missing the 1.1% consensus; core PPI rose just 0.1% m/m versus 0.4% expected, while the 12-month core rate eased to 3.8% from a forecast 4.2%. The report was viewed as supportive for precious metals because it suggests limited pass-through from higher energy costs and leaves the Fed with more flexibility to cut rates in the second half of the year. Naeem Aslam said softer producer inflation “signals limited pass-through” from the Middle East supply shock and weakens the Fed’s hawkish case, while Adam Button pointed to a mix of collapsing natural gas, tariff removal and slower core services inflation as reasons economists missed the mark. For traders, the key takeaway is that gold is still consolidating at elevated levels while benefiting from both lower-rate expectations and safe-haven demand tied to Iran-related tensions. Near term, the market will focus on whether energy prices continue feeding through to consumer inflation or whether the disinflation impulse persists, which would keep the dollar softer and preserve upside risk for bullion.