Gold price lower on the day as U.S. retail sales disappoint in July
(Kitco News) Gold prices edged down following worse-than-expected retail sales data from July.
U.S. retail sales rose 1.2% in July following an upwardly revised increase of 8.4% in June, according to the latest data from the U.S. Commerce Department. Economists were expecting to see an increase of 1.9% in last month’s headline number.
Immediately after the publication, December Comex gold futures ticked down, last trading at $1,951.90 down 0.94% on the day.
Core sales, which strip out vehicle sales, advanced 1.9% last month, beating the expected 1.3% rise.
The report's control group, which strips out autos, gas, building materials, and food services, was up 1.4%, also beating expectations of 0.8% gain.
The lower-than-expected retail sales for July point to a continued need for fiscal stimulus, said CIBC Capital Markets economist Katherine Judge.
“While better than expected on the control group measure, these figures do not include most services, which will have been more directly impacted by the tightening of social distancing restrictions in the past month. The deceleration in spending still suggests that the economy requires a broad fiscal support package,” Judge said.