Harmovest Capital | Key Insights: PPI Hits Three-Year High What's Next for Gold?

14/05/2026 | Market Highlights

Key Takeaways

• U.S. Producer Price Index (PPI) rose to 6.0%, indicating persistent inflationary pressure.
• Markets expect the Federal Reserve to keep interest rates unchanged.
• The U.S. dollar is supported in the short term, while gold remains under pressure.

Market Recap

U.S. PPI increased 6.0% year-over-year in April, marking its highest level in nearly three years and signaling rising upstream cost pressures.

Following the release, markets further reduced expectations for Fed rate cuts. The U.S. Dollar Index (DXY) strengthened, while gold and silver faced short-term downside pressure.

Today's Focus

• UK GDP
• U.S. Retail Sales

A stronger-than-expected U.S. retail sales report could provide additional support for the dollar.

Affected Instruments

• U.S. Dollar Index (DXY)
• Gold / Silver
• S&P 500

Market Sentiment

With inflation remaining elevated, investors remain cautious on the Federal Reserves policy outlook, while overall risk sentiment stays relatively stable.

Technical Analysis | XAUUSD

Gold is testing the key support level at 4,684. A break below this level could lead to further short-term downside.

Summary

Higher-than-expected U.S. inflation data has reinforced expectations that the Federal Reserve will maintain higher interest rates for longer, providing near-term support for the U.S. dollar. Markets will now focus on U.S. retail sales for further direction on the dollar and gold.