Gold price holding firm following 1.7% increase in U.S. retail sales
(Kitco News) -The gold price is off its highs but still holding gains neara five-month high even as U.S. consumers spent more than expected in October.
U.S.retail sales rose 1.7% last month, down from September's 0.8% increaseaccording to the latest data from the U.S. Commerce Department, releasedTuesday; the data significantly beat expectations as economists wereforecasting a 1.3% rise.
Forthe year, retails sales are up 16.3% from October 2020.
Meanwhilecore retail sales, which strips out auto sales, increased 1.7% last month, upfrom September's reading of 0.8%. Economists were expecting to see a 1.0%increase.
Thecontrol group, which excludes autos, gas, building materials, and foodservices and feeds directly into GDP calculations, increased 1.6%. Economistswere expecting to see a 0.9% rise.
Thestronger-than expected retails sales numbers is not having a major impact ongold prices. December gold futures last traded at $1,873.50 an ounce, up 0.36% onthe day.
Although retail sales numbers were better than expected,some economists note that rising inflation could continue to weigh on consumption.
“The October gain won't look as impressive involume terms given higher prices, and the elevated level of sales in thecontrol group suggests that there is scope for softness ahead in that group asconsumption shifts towards services,” said Katherine Judge, senior economist atCIBC.
By Neils ChristensenFor Kitco News
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