(Kitco News) - U.S. consumers remain fairly resilient, but cracks are starting to appear following mixed retail sales data as the holiday shopping season kicked off last month.
U.S. retail sales rose 0.7% in November, following an upwardly revised increase of 0.5% in October, the U.S. Commerce Department announced Tuesday. The data exceeded expectations, as economists had projected a 0.6% increase for October’s headline number.
Over the past 12 months, retail sales increased 3.8%, according to the report.
Meanwhile, core sales, which strip out vehicle sales, were up 0.2% last month—below the consensus forecast for a 0.4% increase.
The report also noted that the control group—excluding sales from auto dealers, building-materials retailers, gas stations, and office supply stores—which feeds directly into U.S. GDP, increased 0.4%, in line with expectations.
The gold market is seeing solid selling pressure in its initial reaction to the latest consumption data. Spot gold last traded at $2,637.80 an ounce, down 0.55% on the day.
Gold is struggling as sentiment around Federal Reserve rate cuts in 2025 remains uncertain. Markets expect the U.S. central bank to announce rate cuts following Wednesday’s monetary policy meeting; however, there are growing concerns that stubborn inflation may force the Federal Reserve to shorten its current easing cycle.
Although consumers have shown resilience through 2024, economists noted that the latest data does not indicate any acceleration in consumption that would drive stronger economic growth.
