AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

7/16/2019: Gold dips on retailing data

Source: Bill Musgrave, American Gold Exchange

Austin — Gold dipped 0.2% to close under $1,412 after upbeat US retail sales data helped to lift the dollar, undercutting demand for alternative stores of value.

Sales at US retailers rose 0.4% in June, beating forecasts and assuaging some fears that the economy is sliding toward recession. It was the fourth straight month of stronger consumer spending, which constitutes roughly 70% of GDP.

The dollar picked up 0.4% against major rivals, helped by the retailing data and weakness in the euro and pound. Eurozone data pointing to sharply lower German investor confidence pressured the euro, while the pound fell to six-month lows on rising Brexit worries as conservative candidates for Prime Minister struck a harder line about negotiations with the EU.

The Federal Reserve reported the US factory sector declined again in the second quarter, with manufacturing falling 2.2%. Meanwhile, import prices fell in June by the most in 6 months because of lower oil prices and slowing global growth.

Despite the uptick in retail sales, the odds of a half-point rate cut from the Fed this month increased to 34% today, up from 29% yesterday and 3% a week ago. The odds of at least a quarter-point cut remain 100%, according to Fed-fund futures trading. Falling rates support higher gold prices by pressuring the dollar.

The other precious metals were mostly higher, with silver and platinum rising 2% and 0.2%, respectively, while palladium fell 3%.

At the Comex close: August gold dipped $2.30 to $1,411.20; September silver rose 31 cents to $15.68; October platinum added $1.70, to $846.90; and September palladium lost $46.60 to $1,516.30 an ounce.