(Kitco News) - The gold market is trading near its daily highs after the latest data showed American consumers’ spending growth coming in below expectations.
U.S. retail sales rose 0.2% in September following a reading of 0.6% in August, the U.S. Commerce Department announced on Tuesday. The data was lower than expectations, as the consensus of economists projected a 0.4% increase in September’s headline number.
In the last 12 months, retail sales increased 4.3%, the report said, against expectations for a 3.9% increase and following August’s 5% increase.
Core sales, which strip out vehicle sales, were up 0.3% in September, against the consensus for a 0.4% increase, and compared to August’s downwardly revised 0.6% print.
Eric Teal, Chief Investment Officer for Comerica Wealth Management, told Kitco News that below the surface, the U.S. retail consumer is faring poorly.
"Although we have seen some impressive turnaround stories developing in the retail space, the bottom 60% of the income distribution is being negatively impacted by changes in policies like tariffs that are not fully offset by OBBBA tax benefits," he said. "Moreover, the wealth effects have primarily benefited the top of the income distribution and driven up spending in luxury goods, while the middle of the income distribution remains very uncertain as we approach the holiday season."
Spot gold rose back near session highs in the moments after the release, and last traded at $4,146.19, up 0.29% on the session.
