US data released today showed a strong rise in the Producer Price Index (PPI), with the index rising 3.4% year-on-year, compared to expectations of 2.9%. On a monthly basis for February, it rose 0.7%, exceeding expectations of 0.3%.
Gold prices fell sharply on the news, as US inflation had already begun to rise significantly, even without factoring in the recent surge in energy prices in March due to the war.
These factors are pushing the Federal Reserve to adopt a tighter monetary policy and refrain from cutting interest rates in the foreseeable future, which was the basis for gold's recent rally.
The dollar index rose to 99.48, up 0.16%, following the data release.
Gold is in a state of oversold territory.$BTC
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