• XAU/USD remains subdued under the weight of a strengthening Dollar and recent US inflation data.
• Producer Price Index exceeds expectations, suggesting Fed easing cycle might be reconsidered.
• Investors recalibrate expectations for December Fed rate cut amid ongoing inflation concerns.

Gold recovers some ground on Thursday yet remains trading below its opening price for the fifth consecutive day, undermined by the Greenback’s advance for its own fifth consecutive day. A slightly hot inflation report in the US and solid jobs data sponsored XAU/USD’s leg down toward the 100-day Simple Moving Average (SMA). At the time of writing, Bullion trades at $2,568.

The market mood shifted negatively yet failed to boost Gold’s prices and underpin the US Dollar. The US Bureau of Labor Statistics revealed that the Producer Price Index (PPI) rose in October, exceeding estimates and September’s figures.

This indicates that the Federal Reserve's (Fed) job is far from done, even though the central bank embarked on an easing cycle that has seen the Fed lower its primary interest rate instrument by 75 basis points since September 2024.

At the same time, the US Department of Labor revealed that unemployment claims filled by Americans diminished compared to the previous reading