Stock Track | SD GOLD Plummets 5.05% Intraday Amid Fed Rate Hike Fears Fueled by U.S. Inflation Data

Stock Track05-15

SD GOLD's stock plummeted 5.05% during intraday trading on Friday, extending losses in the gold sector as market sentiment turned bearish on precious metals.

The decline comes after U.S. April Producer Price Index data came in well above expectations, with headline PPI rising 6% year-over-year and core PPI climbing 5.2%. This significantly boosted market expectations for Federal Reserve rate hikes, raising the opportunity cost of holding non-yielding assets like gold and putting pressure on gold-linked equities.

Additional factors contributing to the sector weakness include rising U.S. Treasury yields across maturities and India's move to raise import duties on gold and silver from 6% to 15% in an effort to curb demand for precious metals and support its domestic currency exchange rate.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment