Make Kitco Your Homepage

Gold Prices Ignore Miss In August U.S. Retail Sales

Kitco News

(Kitco News) -The gold market is holding the critical psychological level $1,200 but is seeing little reaction to data that showed U.S. consumers cutting back their spending after what was a strong summer spending season.

Friday, U.S. retail sales showed broad-based weakness. The headline number rose 0.1% in August, following a revised 0.7% rise in July. Economists were expecting to see a 0.4% rise in the headline number.

At the same time core retail sales were weaker than expected rising 0.3% last month, following July’s revised 0.9% increase. Economists were expecting to see an increase of 0.5%.

The control group, which strips out autos, gas, building materials and food services was also weaker than expected, rising 0.1%. Economists were expecting to see a rise of 0.4%.

"If you tally up the revisions, it's not as bad as it seems at first. Still, it's not a great sign for the consumer," said Daba

The gold market has struggled to find momentum lately as investors continue to focus on the U.S dollar. December gold futures last traded at $1,210.10 an ounce, up 0.15% on the day.

While U.S. consumers were unable to maintain their buying momentum through the summer, Andrew Grantham, senior economist at CIBC World Markets said that the sector remains robust.

“Today's data shouldn't change our forecast for real consumer spending and GDP printing around 3% in Q3, and market reaction should also be limited,” he said.

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.

Precious Metal Charts

Follow Kitco News