US Retail Sales Up By 0.9% in April, Global Gold Markets Reaches At $1834/oz

According to the latest report, U.S. retail sales have increased by 0.9% in April, following an upwardly revised increase of 1.4% in March. The US Commerce Department published this data on Tuesday. However, some economists earlier anticipated that the sales could gain by 1.0% in April. This US retail sales data impacted the global gold markets today. In the past week, the yellow metal in the futures markets was much bearish. The support price was quoted at Rs. $1800/oz. However, today, in the futures markets, and the spot market, gold rates have survived marginally.

Today, the Comex gold futures were quoted at $1827.90/oz, gaining by 0.76%, from the last trading day. Yesterday it was last quoted at $1814.00/oz. On the other hand, the spot gold prices were last quoted at $1829.00/oz, gaining by 0.22%, from the last trading day. However, the US dollar index in the spot market stood at 103.46, falling by 0.67%. In India, the MCX gold in June future was quoted at Rs. 50,349/10 grams, surging by 0.20%, from the last trading day.

Commenting on the recent US sales data and the interest rate hike by the Fed, Andrew Grantham, senior economist at CIBC told Kitco News, "While the increase will look less impressive after taking price movements into account, today's data still suggests that the squeeze on household incomes from inflationary pressures isn't yet having a material impact on discretionary spending. Indeed, spending on goods remains well above its pre-pandemic trend, justifying a further 50bp hike from the Fed to cool the economy at its next meeting." Any further interest rate hikes will drive the gold rates again in the global markets.

Additionally, gold rates today went marginally bullish in India. Today, the 22 carat gold rates are quoted at Rs. 46,550/10 grams, and the 24 carat gold Rs. 50,780/10 grams. In the national markets, the yellow metal has gained by Rs. 300/10 grams for 22 carat gold rates and gained by Rs. 330/10 for 24 carat gold rates.