(Kitco News) - The gold market is rallying after the latest data showed American consumers’ spending growth declining less than expected.
U.S. retail sales fell -0.2% in January following an unrevised reading of 0.0% in December, the U.S. Commerce Department announced on Friday.
The data was actually better than expectations, as the consensus of economists projected a -0.3% decrease in January’s headline number.
In annual terms, retail sales increased 3.2%, the report said, against expectations for a 2.0% increase and following December’s unrevised 2.4% increase.
Core sales, which strip out vehicle sales, were flat at 0.0% in January, in line with the consensus for a 0.0% reading, and December’s unrevised 0.0% print.
Spot gold shot into positive territory and approached the upper edge of its daily range in the minutes after the release, which came out at the same time as nonfarm payrolls, and last traded at $5,124.08 for a gain of 0.84% on the session.
