(Kitco News) -The gold market is holding the critical psychological level $1,200 but is seeing little reaction to data that showed U.S. consumers cutting back their spending after what was a strong summer spending season.
Friday, U.S. retail sales showed broad-based weakness. The headline number rose 0.1% in August, following a revised 0.7% rise in July. Economists were expecting to see a 0.4% rise in the headline number.
At the same time core retail sales were weaker than expected rising 0.3% last month, following July’s revised 0.9% increase. Economists were expecting to see an increase of 0.5%.
The control group, which strips out autos, gas, building materials and food services was also weaker than expected, rising 0.1%. Economists were expecting to see a rise of 0.4%.
“If you tally up the revisions, it’s not as bad as it seems at first. Still, it’s not a great sign for the consumer,” said Daba
The gold market has struggled to find momentum lately as investors continue to focus on the U.S dollar. December gold futures last traded at $1,210.10 an ounce, up 0.15% on the day.
While U.S. consumers were unable to maintain their buying momentum through the summer, Andrew Grantham, senior economist at CIBC World Markets said that the sector remains robust.
“Today’s data shouldn’t change our forecast for real consumer spending and GDP printing around 3% in Q3, and market reaction should also be limited,” he said.
By Neils Christensen
For Kitco News