Gold falls to the lowest level in 5 Weeks

Gold and silver prices fell in mid-US trading on Wednesday, after the release of US retail sales data that came in better than market expectations.

The data pushed gold prices to their lowest level in five weeks. The optimistic US retail sales report worked to ease market expectations of a near-term Fed rate cut.

The February gold futures price fell $22.00 to $2,008.40. Silver futures for March fell $0.393 to $22.705.

Important data released affects Gold, Stocks in favor of the Dollar

US retail sales data was released yesterday and revealed a positive move in the US economic condition in December of last year. In an initial reaction, the dollar index held its gains while gold, oil, silver, and US indexes fell.

US Retail Sales Data

The Commerce Department said on Wednesday that holiday shopping was better than expected in December, with a pickup in shopper traffic to close out a strong 2023.

Retail sales rose 0.6% on a monthly basis in December, compared with expectations for growth of just 0.4%. On an annual basis, retail sales in December climbed 5.59% after rising 3.97% in November.

Core retail sales also grew 0.4% on a monthly basis, which was above expectations for a rise of 0.2%.

The increase was supported by a rebound in the apparel and accessories sector, as well as online sales.

This data points to the strength and resilience of the US economy at the moment, which suggests that the Fed could keep interest rates elevated for a longer period of time without harming the country’s overall economy. This is in line with signals from Fed member Harker yesterday that the Fed does not need to cut interest rates at a rapid pace in 2024.

Most important economic data expected today:

The financial markets are awaiting the release of the US jobless claims statement and the Philadelphia Manufacturing Index today at 1:30 PM GMT, and these data will have a significant impact on the movement of global markets.

Markets Now:

Spot gold futures prices are falling to $2,012.44 per ounce, while futures are falling 0.22% to $2,016.85 per ounce.

Oil prices are currently rising strongly, with US crude oil prices rising 0.45% to $72.99 per barrel.

The Nasdaq rose 0.40% to 16,800 points, while the Dow Jones remained at 37,283 points.

Silver prices have risen to record $22.61, up 0.30%.

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Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances, or needs.

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