U.S. producer prices climbed 1.1% in May, marking a 6.5% increase year-over-year—the sharpest annual rise since November 2022. Core wholesale prices also trended upward, gaining 0.4% for the month and 4.9% compared to May 2025. This inflationary pressure is compounded by labor market shifts, with initial jobless claims reaching 229,000 for the week ended June 6, an increase of 4,000 from the previous period, alongside 1.8 million continuing claims.
Gold and Silver Slip as Producer Price Data Fuels Inflation Fears
Spot gold and silver prices retreated in early U.S. trading Thursday as a hot inflation report bolstered the Federal Reserve’s hawkish stance. While geopolitical tensions in the Middle East continue to provide a floor for energy markets, investors are primarily reacting to fresh producer price data and rising Treasury yields.
Energy markets remain volatile as the conflict between the U.S. and Iran escalates. While Tehran claims the Strait of Hormuz is closed, U.S. Central Command disputes the blockade, even as Washington reports disabling a tanker. Nymex WTI crude currently trades near $91.00 a barrel, with Brent at $93.35. Despite this geopolitical friction, equity futures signaled a rebound, with S&P 500 futures rising 0.5% and Nasdaq futures gaining 0.8%, as traders weigh the likelihood of a restricted-flow energy regime against broader inflation concerns. Benchmark 10-year Treasury yields continue to hover near 4.5%, keeping pressure on non-yielding precious metals.
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