Gold’s recovery has stalled following US Retail Sales

The reco0very of gild price has stalled following the release of the key Retail Sales Data and the Producer Price Index (PPI) data.

US Retail Sales data for October contracted at a slower pace of 0.1% against estimates of a 0.3% decline. The US monthly headline PPI contracted by 0.5%, while economists projected a 0.1% gain.

Gold price faces selling pressure after a slower-than-projected decline in the US Retail Sales data for October. The US monthly headline Producer Price Index logged the steepest decline since April 2020 due to a significant fall in gasoline prices.

Core PPI remained stagnant. The broader demand for the precious metal remains upbeat as easing price pressures in the US economy have dented bets of further policy-tightening by the Federal Reserve (Fed). The soft US inflation report for October indicates that current interest rates set by the Fed are adequate to bring down inflation to 2%.

The US Dollar and bond yields are broadly down as the soft Consumer Price Index (CPI) underpin a risk-on impulse. Easing consumer and producer inflation has boosted confidence among investors in the possibility of early rate cuts by the Fed.