The Sunday News
THE gold market remains under pressure after wholesale inflation pressures rose sharply last month. Yesterday, the US Labour Department said its Producer Price Index (PPI) rose 0,6 percent in March, following February’s increase 0,1 percent; the data was significantly stronger than expected with economists’ forecasting an increase of 0,3 percent.
This is the first time in four months that producer inflation beat expectations.
At the same time core PPI, which strips out volatile food and energy costs, increased 0,3 percent last month, following February’s increase of 0,1 percent. Economists were expecting to see wholesale inflation rise 0,2 percent.
The All Share index ended its five-day winning streak after losing 0.31 points 0,25 percent to close at 125.51 points. British American Tobacco led the losers with a $0,1918 loss to settle at $29,8082, Old Mutual Limited eased $0,0427 to $8,2273 and Africa Sun was $0,0181 down at $0,1600. Nampak also decreased by $0,0178 to end at $0,3022 and Econet traded $0,0119 weaker at $1,0796.
Losses were partially offset by gains in SeedCo International Limited which added $0,0948 to $1,4023, Natfoods lost $0,0200 to close at $5,6200 and Proplastics was $0,0150 stronger at $0,2400. Padenga also increased by $0,0144 to $1,0445 and Innscor rose by $0,0031 to settle at $1,5056.