Drop In U.S. Retail Sales Hurt Equity Markets But Bullish For Gold
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GOLD
Retail sales in the U.S. for December were down 1.2%, the largest drop in over nine years. This news is negative for the equity markets, but bullish for the Gold market. Why? Because now, with this news, the Federal Reserve is highly unlikely to raise interest rates. However, negative news today on Chinese trade negotiation is driving up the U.S. Dollar, putting pressure on Gold. After the U.S. Dollar Index hit 97.12, Gold hit $1,302, then sizeable buying appeared and quickly rallied back above $1,310 per ounce. At 11am PT today, Gold is trading unchanged at $1,312 per ounce on good volume.
SILVER
Silver hit a low of $15.45 when Gold sold-off, but rallied back above $15.60 very quickly. Silver needs to close back above $15.60 to get back into its recent trading range. At 11am PT today, Silver is trading at $15.60 per ounce, down $0.07 on good volume.