U.S. producer prices accelerated in August, sending New York gold futures below $4,400/oz. Stephen Brown, Capital Economics' North America chief economist, said PPI subcomponents that feed into the core PCE deflator were notably strong in August, raising the likelihood of a Fed rate hike next week. CME FedWatch now prices roughly a 70% probability of a hike, versus about 60% earlier on Thursday. In U.S. morning trade a stronger dollar and rising Treasury yields pressured gold down 1.5% to $4,392

U.S. producer prices accelerated in August, sending New York gold futures below $4,400/oz. Stephen Brown, Capital Economics' North America chief economist, said PPI subcomponents that feed into the core PCE deflator were notably strong in August, raising the likelihood of a Fed rate hike next week. CME FedWatch now prices roughly a 70% probability of a hike, versus about 60% earlier on Thursday. In U.S. morning trade a stronger dollar and rising Treasury yields pressured gold down 1.5% to $4,392.90/oz.