Make Kitco Your Homepage
News Bites

Gold Slips After January U.S. Retail Sales Rise 0.4%

Editor's Note: Updating earlier story with more details from report, comment from economist and fresh prices.

(Kitco News) - Gold eased after a government report showing U.S. retail sales rose by a stronger-than-forecast 0.4% to a seasonally adjusted $472.1 billion in January.

Meanwhile, retail sales excluding autos were up 0.8% to $371 million.

Going into the report, consensus expectations compiled by news organizations had been for a rise of 0.1% or 0.2% in overall sales. Sales excluding autos were forecast to rise by 0.4% to 0.7%.

As of 8:46 a.m. EST, Comex April gold was down $6.60 to $1,218.80 an ounce. One minute prior to the report, the contract was at $1,225.70.

“Combined with the upward revisions to December, consumption looks like it will be a solid contributor to Q1 growth,” said Royce Mendes of CIBC Economics. December sales were revised from a gain of 0.6% to a 1.0% increase.

The categories with the largest sales increases in January were gasoline stations, 2.3%; sporting goods, hobby, book and music stores, 1.8%; electronic and appliance stores, 1.6%; and food services, 1.4%.

Total retail sales were up 5.6% from the January 2016 level, while sales excluding autos were up 5.3% year-on-year.

Consumer purchases make up the single largest component of U.S. gross domestic product, thus market participants closely monitor the data as a gauge of the economy.

By Allen Sykora of Kitco News; asykora@kitco.com

 

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
kitco news

Follow Kitco News

Precious Metal Charts