US PPI 4-yr high; USD up, gold down 2nd day, WTI inverted V.

On Wednesday, driven by dual increases in energy and service prices, the US PPI surged to a four-year high in April, the latest sign of accelerated inflation during the Iran War. The US dollar index continued its upward trend, ultimately closing up 0.21% at 98.47; The benchmark 10-year Treasury yield closed at 4.465%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 3.994%. Gold prices fluctuated and slightly fell for the second consecutive trading day, with spot gold closing at $4688.71 per ounce on Wednesday. The producer price increase in the United States in April was the largest since the beginning of 2022, coupled with intensified consumer inflation, the market's expectations of the Federal Reserve cutting interest rates this year have been largely shattered, and even began to speculate on the possibility of a rate hike next year. India has raised the import tariff on gold from 6% to 15%, further suppressing demand. The strengthening of the US dollar, the rise in US bond yields, and the suction effect of the stock market collectively put pressure on gold. International oil prices have fallen. WTI crude oil showed an inverted V-shaped trend, reaching a high of $103.75 per barrel during the day, then wiping out all gains, and finally closing down 1.22% at $101.07 per barrel; Brent crude oil ultimately closed down 2.09% at $103.09 per barrel.