Gold and the GLD ETF are trading lower after a hotter-than-expected U.S. Producer Price Index (PPI) for August. The report, showing a 0.4% monthly increase and a 5.4% annual rise, has heightened concerns about persistent inflation. [4, 5] This has led to increased market expectations for another interest rate hike by the Federal Reserve, with the probability of a September rate increase rising to nearly 70%. [4, 6, 8] Higher interest rates and rising Treasury yields increase the opportunity cost of holding non-yielding gold, putting downward pressure on its price. [4, 6]