(Kitco News) - The gold market is golding steady after the latest data showed American consumers’ spending growth improving in line with expectations last month.
U.S. retail sales rose 0.5% last month following a reading of 0.6% in June, the U.S. Commerce Department announced on Friday. The data were in line with expectations, as the consensus of economists projected a 0.5% increase in July’s headline number.
In the last 12 months, retail sales increased 3.9%, the report said, against expectations for a 3.5% increase and following June’s 4.4% increase.
Core sales, which strip out vehicle sales, were up 0.3% last month, matching the consensus for a 0.3% increase, and compared to June’s upwardly revised 0.8% print.
Chris Zaccarelli, Chief Investment Officer for Northlight Asset Management, told Kitco News that revisions were the big story with the Jobs Report two weeks ago, and the same is true with today's retail sales report.
"Prior month retail sales numbers were actually better than previously reported, which makes today’s headline numbers better than they appear (e.g. because they are still increasing on much higher previous numbers)," he wrote. "As long as consumer spending holds up and companies are able to retain workers because of that robust spending, the flywheel can continue to spin, pushing corporate profits and stock prices higher."
"The market is expensive, inflation has been increasing and unemployment has been rising, and yet consumers are still spending, the economy is still growing and the market is still rising," Zaccarelli noted. "These aren’t the perfect conditions for a robust rally, but right now they are good enough for a slow grind higher – with the occasional pullback – on a path to a higher stock market by year end."
Spot gold dipped to the session low of $3,332 per ounce in the moments after the release but quickly recovered, and last traded at $3,339.09, up 0.11% on the session.
