Rises Despite Stronger Than Expected US Data

Gold is 0.2% lower in today’s Asia-Pac session, after closing 0.4% higher at $2456.79 on Thursday.

• Broad dollar strength in the aftermath of stronger US data yesterday had a very brief negative impact on the yellow metal. Spot gold swiftly recovered to finish moderately higher on the session.
• July's advance retail sales report showed that the recent unexpected pickup in consumer momentum continues. June retail sales came in well above expectations at 1.0% M/M (0.4% expected, -0.2% prior rev from 0.0%).
• Initial jobless claims surprised lower for the second consecutive week with a seasonally adjusted 227k (cons 235k) in the week to Aug 10 after a marginally upward revised 234k (initial 233k).
• 2-year yields spiked 14bps to 4.09% as investors reduced expectations for aggressive easing by the Fed. 10-year yields rose 8bps to 3.91%.
• Higher rates are typically negative for gold, which doesn’t pay interest.
• According to MNI’s technicals team, attention remains on $2483.7, the Jul 17 high and a bull trigger. Clearance of this hurdle would resume the technical uptrend.