Gold Prices Holding Firm Above $3,300 After U.S. Retail Sales Rise 1.4% In March

(April 16, 2025 - Neils Christensen, Kitco News)

(Kitco News) - The gold market has seen an unprecedented climb to new all-time highs above $3,300 an ounce and continues to hold its ground, even as U.S. consumers remain fairly resilient in the face of growing recession fears.

U.S. retail sales rose 1.4% last month following February’s increase of 0.2%, the U.S. Commerce Department announced Wednesday. The consumption data was stronger than expected, as economists had forecast a 1.3% increase.

Over the past 12 months, retail sales increased by 4.6%, the report said.

Core sales, which exclude vehicle purchases, rose 0.5% last month, compared to February’s 0.3% increase. The core data was also stronger than expected, with consensus forecasts calling for a 0.4% rise.

The report noted that the control group—which excludes sales from auto dealers, building-materials retailers, gas stations, and office supply stores, and feeds directly into U.S. GDP—increased by 0.4%, missing expectations for a 0.6% gain.

“Never underestimate the spending power of the U.S. consumer,” said Adam Button, Chief Currency Strategist at Forexlive.com.

The gold market is not seeing much reaction to the latest economic data, as momentum continues to drive price action. Spot gold last traded at $3,335.40 an ounce, up more than 3% on the day.

Although U.S. consumers remain in relatively good shape, some analysts and economists note that much of the recent activity may have been the result of front-loading ahead of President Trump’s implementation of global tariffs in early April.

Looking ahead, some analysts and economists expect higher prices resulting from global tariffs to weigh on consumption.

Although many economists remain hopeful that the U.S. economy can avoid a recession this year, they acknowledge that risks are rising.