Gold keeps getting stronger

 

Gold futures jumped to a three-month high on Wednesday, after data showed retail sales in the U.S. rose less than expected in September, dampening optimism over the strength of the economy and dimming the case for higher interest rates.

Gold for December delivery on the Comex division of the New York Mercantile Exchange hit an intraday peak of $1,176.00 a troy ounce, the highest level since June 30, before trading at $1,173.20 during U.S. morning hours, up $7.80, or 0.67%. A day earlier, gold inched up 90 cents, or 0.08%.

The U.S. Commerce Department said that retail sales increased by 0.1% last month, missing expectations for a gain of 0.2%. Retail sales for August were revised down to a flat reading from a previously reported increase of 0.2%.

Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.

Core retail sales, which exclude automobile sales, declined 0.3% in September, worse than forecasts for a fall of 0.1%. Core sales in August decreased 0.1%, whose figure was revised from a previously reported gain of 0.1%.

Core sales correspond most closely with the consumer spending component of the government's gross domestic product report. Consumer spending accounts for as much as 70% of U.S. economic growth.

 

 

 

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