Gold Prices See Little Reaction To June Retail Sales
(Kitco News) - The gold market is holding its ground near last week’s one-year low following slightly stronger-than-expected retail sales figures last month.
Monday, U.S. retail sales rose 0.5% in June, following a revised 1.3% rise in May. Economists were expecting to see a 0.4% rise in the headline number. For the year retail sales are up 6.6%.
At the same time core retail sales were in line with expectations, rising 0.4% last month. May’s monthly increase was also revised higher to 1.3%.
The one weak point in the report was the control group, which strips out autos, gas, building materials and food services. This index was unchanged last month following a 0.4% rise in May.
The gold market has struggled to find momentum lately as investors continue to focus on the U.S dollar. August gold futures last traded at $1,242.10 an ounce, up 0.7% on the day.
Adam Button, senior currency analyst at Forexlive.com said that weakness in the control group won’t be enough to overshadow the overall strength in the report.
“Overall, there is nothing here to slow down the US dollar,” he said.
Royce Mendes, senior economist at CIBC World Markets, said that May’s upward revisions has turned the June data into a stellar report. He added that he also didn’t think the flat control group reading will take much away from the overall positive tone in sales.
“The upward revision to May's data has boosted the US dollar and seen fixed income sell-off,” he said.