The US Producer Price Index (PPI) for December came in significantly stronger than expected: YoY +3.0 % (expected 2.7 %), MoM +0.5 % (expected 0.2 %). This is a clear inflation impulse that further reinforces the dampened rate cut expectations from the previous day. The market is reacting promptly: Gold continues to correct, the dollar stabilizes slightly, and the indices oscillate nervously.
Gold and Silver Fighting for Important Levels
Gold has corrected sharply from yesterday's high of around $5,626 and is now fighting around the $5,000 mark after the PPI data (currently ~$5,015–5,050, –10 % from the high). Silver is similarly affected – from the high area around $120 it fell below $100 and is now trading just below it. Both metals are showing clear consolidation after the previous overbought condition, with possible support zones around $5,000 (gold) and $100 (silver).
USD Stabilizes
The US Dollar Index (DXY) has slightly gained on the PPI data and is stabilizing at around 96.50–96.70. Against the EUR (EUR/USD ~1.19), GBP and Yen, the dollar has partially made up for yesterday's losses – the basic tendency remains weak, but the inflation impulse gives it short-term support.
Indices Under Pressure – Slight Recovery
The major US indices (S&P 500, Nasdaq, Dow) were initially in the red after the PPI release, but are partially recovering in pre-market (S&P 500 +0.1 to +0.3 %). Sentiment remains fragile – a PPI confirming inflation pressure dampens risk appetite, but the robust US economy is preventing a real sell-off so far.
In Europe, the indices are initially friendly after market open on the last trading day of the week. The DAX is currently (10:00 CET) showing a gain of around 0.89 % and the Euro Stoxx 50 a gain of 0.65 %.
Conclusion
The entire market continues to show high nervousness. Gold and silver correct sharply, the dollar stabilizes for now, and the indices oscillate between pressure and slight recovery. Any new impulse can lead to significant swings up or down. There is currently still a kind of „holding pattern“ – the direction will probably only become clear with the next important data points.
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