Gold price sees some selling pressure following solid U.S. retail sales numbers
(Kitco News) - Gold the gold market is seeing some selling pressure but still holding on above critical initial support around $1,550 an ounce, as the holiday shopping season was relatively stronger than expected.
U.S. retail sales rose 0.3% in December up from November’s revised rise of 0.3%, according to the latest data from the U.S. Commerce Department, released Wednesday; the data were in line with economist expectations.
Meanwhile, core sales, which strips out vehicle sales rose 0.7% last month, solidly beating expectations. Consensus forecasts were calling for a 0.5% rise
The control group, which excludes autos, gas, building materials, and food services was rose 0.4%. Economists were expecting to see a 0.4% increase.
The stronger-than-expected data created some selling pressure for gold. February gold futures last traded at $1,553.50 an ounce, relatively unchanged on the day.
"It was a happier holidays after all for US retailers, as core sales growth rebounded following a poor November," said Andrew Grantham, senior economist at CIBC.
He added that the December numbers bode well for U.S. consumption in the first quarter of 2020, after a disappointing fourth quater.