Gold price holding above $1,900 following strong rise in U.S. retail sales
(Kitco News) - The gold market is holding on to modest gains as prices trade above $1,900 even as more U.S. consumers than expected went shopping last month.
U.S. retail sales rose 1.9% in The gold market is holding on to modest gains as prices trade above $1,900 even as more U.S. consumers than expected went shopping last month.
September following an August’s downward revised increase of 0.5%, according to the latest data from the U.S. Commerce Department, released Thursday. The data were stronger than expected as economists were expecting to see an increase of 0.7%.
Meanwhile, core sales, which strips out vehicle sales rose 1.5% last month. Economists were expecting to see a 0.4% rise.
The control group, which excludes autos, gas, building materials, and food services rose 1.4%. Economists were expecting to see a 0.2% increase.
According to some economists, the data bodes well for expectations of a sharper recovery after the U.S. economy was devastated by the COVID-19 pandemic.
“This is a very strong report. As the old saying goes ‘never underestimate the spending power of the US consumer,’” said Adam Button, chief currency strategist at Forexlive.com.
The gold market is seeing little reaction to the better-than-expected retail sales numbers. December gold futures last traded at $1,912.10 an ounce, up 0.17% on the day.
Gold prices are holding firm above $1,900 even after U.S. retail sales rose 1.9% last month. December gold futures last traded at $1,913.60 an ounce, up 0.25% on the day.
Katherine Judge, senior economist at CIBC, said that the latest retail sales numbers put consumer spending 4% above pre-pandemic levels. Although consumers have room to spending more, she added that there are still concerns on the horizon.
“Despite the heightened uncertainty around further fiscal support, American consumers still have spending ammunition left in the tank, as demonstrated by the still elevated savings rate. However, downside risks remain, as the rise in Covid cases lately could hold back spending on services, particularly restaurants,” she said.