Gold falls amid high US bond yields

Gold prices fall 1.48% as US economic data showcases resilience, led by strong retail sales and industrial production figures. Hawkish tones from Fed officials Mester and Barkin contribute to rising US Treasury bond yields, further pressuring gold prices; trading at $1985. 76 per ounce at the time of writing.

Upcoming speeches from New York Fed John Williams, Dallas Fed Lorie Logan, and Atlanta’s Fed Raphael Bostic may provide more insight into the economic outlook. Gold price is erasing Monday’s gains, plunging 1.48%, as US data showed signs of resilience amidst a solid retail sales report.

Industrial Production recovered in April, though manufacturing production stood at contractionary territory. The factors mentioned above and the US bond yields rising were a headwind for XAU/USD prices. At the time of writing, the XAU/USD is trading at $2000.91 after hitting a daily high of $2018.28.

The US economic agenda revealed that Retail Sales rose by 0.4% MoM, below estimates of 0.8%, while excluding autos rose by 0.4% MoM, aligned with estimates. It should be said that both figures surpass March’s readings, which showed sales plunging. Annually based figures rose by 1.6% below the prior’s month 2.4% rise, suggesting an ongoing deceleration of the US economy.

In another data, the US Fed reported that Industrial Production in April rose by 0.5% MoM, above estimates of 0%, while annually based, uptick to 0.2% from 0.1% in March. The same report showed that Manufacturing Production expanded at a 1% MoM pace, crushing forecasts of 0.1%, with motor vehicle production underpinning the figures.