The United States released retail sales and unemployment claims data tonight at 8:30 PM WIB. The price of Gold has registered an increase following the release of disappointing economic data from the US. Retail sales in the US recorded only a 0.4% increase, falling short of market expectations of 0.5%.
This data indicates a slowdown in domestic consumption, which is a key driver of US economic growth. This weakening raises concerns regarding the strength of the economy, prompting investors to seek refuge in safe-haven assets such as Gold.
Furthermore, the weekly unemployment claims report in the US showed an actual figure of 217,000, exceeding the forecast of 209,000. This information suggests that the labor market is beginning to lose momentum. Uncertainty surrounding the Federal Reserve’s monetary policy is also intensifying since this data could influence upcoming interest rate decisions. With the US dollar weakening due to these sentiments, the price of gold has been propelled to higher levels.
Currently, Gold is trading around the resistance level of $2,710 per troy ounce. If the bullish momentum continues, Gold could potentially breach the psychological level of $2,720. Alongside Gold, major currency pairs have also risen in response to the data, with GBPUSD sharply climbing to 1.2199 and EURUSD increasing to 1.0290.
