Copper climbs to a 3-month high on falling supply, stock market rebound
By Myra P. Saefong & Polya Lesova, MarketWatch
Last Update: 4:24 PM ET Mar 15, 2007
SAN FRANCISCO (MarketWatch)--Gold futures logged their first gain in five sessions on Thursday, after producer price data showed a surprising surge in U.S. wholesale inflation for February, bolstering the metal’s appeal as an inflation hedge.
Gold for April delivery closed up $4.60 at $647.10 an ounce on the New York Mercantile Exchange. Gold prices were boosted by the release of February’s PPI, which showed prices up 1.3%, outpacing expectations for a 0.6% increase. Excluding food and energy prices, core PPI rose 0.4%, twice the 0.2% gain that was expected. See full story.
“The big problem is that the economy is showing some significant signs of slowing right now and the real estate/homebuilder/mortgage debacle isn't helping,” said Neal Ryan, director of economic research at Blanchard, in emailed comments. The real question is “can the Fed continue to walk down the middle of the road on the growth or inflation equation without being hit by trucks traveling in both directions?”