Gold Loses Gains On Retail Sales Report - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

Gold Loses Gains On Retail Sales Report

blog | Published On by
Gold Loses Gains On Retail Sales Report

Gold surrendered $13 in overnight gains when the retail sales report for April was released at 8:30 this morning. The news also temporarily propelled the dollar to a six-month high. The scenario repeated itself at 10 am, when consumer sentiment also surprised to the upside, rising from 89.0 to 95.8. Analysts expected a read of 89.7.

Spot gold is bouncing up and down on the $1,262 mark, near yesterday's close. The morning high is standing at $1,273. These numbers are coincidentally our first level of support and resistance. If $1,262 fails to hold, the next stop is $1,257. If gold prices pierce the $1,273 mark, $1,281 should prove to be the next hurdle.


The 1.3% increase in retail sales month over month was the biggest jump in 13 months. Retail sales in March had fallen 0.3%. The report was welcome news to a market that had been battered by falling sales at high end retailers like Nordstrom and Macy's, as well as at JC Penny's. It may simply be that consumer shopping has in large part moved online (hello, Amazon Prime.) Later in the morning, consumer sentiment beat estimates, to rise to the highest level so far in 2016

The yen reversed its rise Thursday, as the Bank of Japan tried to scare speculators by intimating further easing measures. The Fed, in its turn, talked up imminent rate hikes, to further lift the dollar. Cleveland Fed president Loretta Mester and Boston Fed president Eric Rosengren both talked about inflation starting to grow, and the need for the Fed to consider hiking interest rates soon.

All this talk pulled gold down from a nice rally, Spot gold lost $13.50 (-1.06%) to close at $1,263.20. June gold futures settled $4.30 lower, to $1,271.20.


Oil prices oscillated on dueling sentiment on a growing global oil glut, and temporary production shortages in Canada and Nigeria (which were wiping out daily global surpluses.)

West Texas Intermediate crude for June delivery recovered earlier losses to settle at $46.70 a barrel. Brent futures rose to $48.08. If prices get much higher, US oil production may start growing again. A price around $50 a barrel will make many shale oil wells profitable again.

Bad news from Apple and Macy's tore into major stock indices in New York yesterday, but hte Dow and S&P 500 managed to close basically flat. The Nasdaq wasn't as lucky, losing almost a half-percent.

The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product

About the Author

Everett Millman

Steven Cochran

Precious Metals Market Analyst
BS University of South Florida (2002)

A published writer, Steven's coverage of precious metals goes beyond the daily news to explain how ancillary factors affect the market.

Steven specializes in market analysis with an emphasis on stocks, corporate bonds, and government debt. He writes a monthly review of the precious metals markets for

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.