Gold trades near 9-month high as U.S. wholesale inflation and retail sales fall
NEW YORK (Jan 18) Gold traded near its highest level since April on Wednesday as investors digested another batch of U.S. economic data showing wholesale inflation and retail sales both slowed in December.
Price action- Gold futures for February GC00, 0.75% GCG23, 0.76% delivery gained $11, or 0.6%, to $1,928 per ounce on Comex.
- Silver futures for March delivery SI00, 1.17% SIH23, 1.15% increased by 20 cents, or 0.8%, to $24.28 per ounce.
- Palladium for March PAH23, +3.14% advanced $18, or 1.1%, to $1,752 per ounce, while April platinum PLJ23, 3.50% rose by $28.20, or 2.8%, to $1,076 per ounce.
- Copper for March HG00, 2.90% HGH23, 2.90% delivery climbed by 9 cents, or 2.3%, to $4.32 per pound.
U.S. economic data released on Wednesday helped push gold higher by showing surprising weakness in the strength of the U.S. consumer, while adding more evidence that inflation has continued to slow.
U.S. wholesale prices sank 0.5% in December, extending a string of low readings. while U.S. retail sales fell 1.1% in December, according to government figures, compared with forecasts for a 1% fall. Even when excluding automobiles, sales still declined by 1.1%, compared with expectations for a 0.5% decline.
The takeaway is that inflation is slowing along with the pace of economic growth, which undermines hopes for a soft-landing in the U.S. despite earlier signs that its economy finished 2022 in better-than-expected shape.
“The data has supported the gold price as traders believe that the Fed is unlikely to adopt a hawkish policy in the face of a weak economy,” said Naeem Aslam, chief market analyst at Avatrade, in a note to reporters.
MarketWatch
