Gold rises to near US$4,400 as weak retail data weighs on U.S. dollar

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Or sign-in if you have an account.One kilogram gold bars at the ABC Refinery smelter, operated by Pallion, in Sydney, Australia, on April 17, 2025. Photo by Brendon Thorne/BloombergGold extended a two-week advance as weaker U.S. retail sales data weighed on the U.S. dollar, making bullion cheaper for most buyers.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe yellow metal rose as much as 0.9 per cent before paring gains to trade near US$4,400 an ounce, after ending the previous week almost one per cent higher. Latest U.S. data showed declines in both consumer sentiment and retail sales, helping to ease fears of an imminent rate hike, which is typically a headwind for non-yielding bullion.A gauge of the U.S. dollar was down by 0.2 per cent on Monday, making bullion that’s priced in the currency cheaper. The yield curve — referring to the gap between the long-term and short-term Treasury yields — was also steepening.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try again“Markets don’t believe the Fed is truly hawkish in the near term,” said Justin Lin, an analyst at Global X ETFs. Money markets are pricing in less than one third of a chance of a rate hike at the Fed meeting in September, down from more than 70 per cent at the start of the month.Still, volatility continued to shroud the global energy supply outlook, showing that the risk of monetary tightening has not gone away. More ships came under attack in the Strait of Hormuz late last week, while the U.S. said it was preparing to impose new measures aimed at crippling Iran’s economy.Some vessels exiting the strait with satellite transponders turned off have helped to keep global energy prices in check. Iran and Oman also appear to be edging closer to a deal on how the critical waterway should be managed, although the U.S. isn’t party to those talks.Gold’s recovery above the key US$4,000-an-ounce threshold has been driven by renewed investor appetite and an increase in central bank purchases, notably from China. Gains last week took the metal above its 100-day moving average for the first time since April, and it continues to hover near that level.Bullion “will require a meaningful break above US$4,400 to confirm that its positive momentum has further room to run,” said Global X ETFs’ Lin. “The recent bounce, while mostly driven by technicals, has also priced in most of the positive catalysts from the past week, so we may see gold trade relatively flat” until the next clear catalyst, he added.The minutes of the Fed’s July policy meeting due for release on Wednesday are set to provide some clarity on rate considerations.Spot gold was 0.4 per cent higher at US$4,394.38 an ounce at 2:20 p.m. in Singapore. Silver rose 1.6 per cent to US$65.73 an ounce, after gaining almost two per cent last week. Platinum and palladium advanced. The Bloomberg Dollar Spot Index, a gauge of the U.S. currency, was down 0.2 per cent.With assistance from Wendy WellsThis advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.