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Business Maverick

Gold Declines as Retail Sales Eyed Before Debt-Ceiling Meeting

Gold Declines as Retail Sales Eyed Before Debt-Ceiling Meeting
Unmarked gold bars at a gold and silver refinery operated by MMTC-PAMP India, in Nuh, India, on Wednesday, 31 August 2022. (Photo: Anindito Mukherjee/Bloomberg)

Gold fell as traders assessed robust retail sales data before a key meeting to resolve the US debt-ceiling impasse.

US retail sales excluding autos and gasoline rose more than expected in April, highlighting the strength of consumer spending. The dollar edged higher following the print, sending gold down as much as 0.8%. Traders are awaiting news from a Tuesday afternoon meeting between President Joe Biden and House Speaker Kevin McCarthy in Washington.

“Gold might continue to soften until Wall Street gets a clear sign that market stress is emerging from either debt-ceiling talks, regional banking fears, or sticky inflation weighing on the consumer,” said Ed Moya, senior market analyst at Oanda. “This retail sales report is not supporting the recession trade and that is why gold has been unable to rally.”

Gold Is Losing Upside Momentum | Mixed US data and debt-ceiling impasse keep gold in check

Later in the day, several Federal Reserve officials will give speeches that will be watched closely for guidance on the US central bank’s interest rate path.

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Spot gold declined 0.9% to $1,998.69 an ounce as of 11:14 a.m. in New York. The Bloomberg Dollar Spot Index rose 0.2% after falling 0.3% in the previous session.

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