(Kitco News) - The gold market continues to keep an eye on all-time highs even as the U.S. consumer shows some resilience making more purchases than expected last month.
U.S. retail sales were unchanged last month following an upwardly revised increase of 0.3% in May, the U.S. Commerce Department announced Tuesday. The data beat expectations, as economists' consensus calls forecasted a 0.3% decline.
For the year, headline retail sales increased 2.3% the report said.
Core sales, which exclude vehicle sales, rose 0.4%last month, significantly beating expectations. Economists were looking for a 0.1% increase.
Meanwhile, the report said that the control group, excluding sales from auto dealers, building-materials retailers, gas stations, and office supply stores, which also feeds directly into U.S. GDP, increased 0.9%. Economists were looking for a 0.2% increase.
The gold market is largely ignoring the better-than-expected economic data as it continues to attract technical bullish momentum near its all-time highs. August gold futures last traded at $2,440 an ounce up 0.46% on the day.
Although the latest economic data shows robust consumption, providing support for economic activity, it has not shifted market expectations for the Federal Reserve to cut interest rates in September, which is supporting gold prices.
Paul Ashworth, Chief North American Economist at Capital Economics, noted that the June retail sales numbers set up the economy for a potential recovery in the third quarter.
“Although retail sales were unchanged in June, the strong 0.9% m/m rise in control group sales should ease concerns about the plight of the consumer in the wake of the renewed slump in sentiment,” he said.
