Gold Surges After Dismal Retail Sales

WASHINGTON (Alliance News) - Gold futures surged Tuesday as mixed economic data dented the US ...

Alliance News 14 February, 2018 | 6:41PM
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WASHINGTON (Alliance News) - Gold futures surged Tuesday as mixed economic data dented the US dollar and lowered expectations for agressive rate hikes from the Federal Reserve.

Gold jumped USD27.60, or 2.1%, to settle at USD1,358 an ounce, taking back recent losses.

A downbeat retail sales report hinted that the economy may be in worse shape than once imagined.

The Commerce Department said retail sales fell by 0.3% in January compared to economist estimates for a 0.2% uptick in sales.

"Overall, some of the weakness in January retail sales could be linked to the unusually high number of reported flu cases last month but, on balance, it was probably inevitable that sales would start to slow after their recent strength," Andrew Hunter, US Economist at Capital Economics.

The news overshadowed today's closely-watched inflation report.

The Labor Department said its consumer price index climbed by 0.5% in January after edging up by a revised 0.2% in December.

Economists had expected consumer prices to rise by 0.3% compared to the 0.1% uptick originally reported for the previous month.

Copyright RTT News/dpa-AFX

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