Gold prices rose because of falling investor confidence in the U.S. dollar
Stock Markets Group – the Price of gold futures rose on Tuesday as mixed economic data have undermined investor confidence in the U.S. dollar and reduced expectations of aggressive interest rate hike by the fed.
Gold jumped $27,60. United States, or 2.1%, to $1 358. Per ounce, resulting in a further loss of value of the yellow metal.
Published a report on retail sales shows that the US economy has slowed growth, while analysts had expected stronger results.
According to the Commerce Department, retail sales in January fell 0.3% against 0.2% decline that analysts had expected.
As reported by Capital Economics economist Andrew hunter,
“Overall, some decline in retail sales in January may be due to the high number of registered cases of flu last month. The increased pressure post-holiday period and seasonal fluctuations of demand»
This news eclipsed released the inflation report, which closely followed investors.
The labor Department reported that the consumer price index in January rose 0.5%, after growth in December of 0.2%. Economists had expected consumer prices to rise by 0.3% compared with 0.1% growth last month.
The price of gold depends heavily on the greenback, and today’s volatility in the precious metals market is associated partly with the mixed macroeconomic data coming often at odds with the dynamics of the U.S. dollar.
This year, many experts note the high growth potential in the gold price, while it is expected that the range will remain within the 1 300-1 500 dollars per Troy ounce.
Further gold dynamics will depend on the monetary policy of the fed in raising rates and rhetoric that will sound in performances of participants of the monetary policy Committee.
Analyst of commodity markets,
Stock Markets Group