Gold prices have held firm despite better than expected retail data, underlining the strength and desirability of the precious metal as the pandemic rumbles on.
The latest figures from the U.S. Commerce Department show that sales dropped by 2.7% in February, but increased by 9.8% in March, way above the 5.9% which had been expected.
Economist Katherine Judge, from CIBC Capital Markets said, “U.S. retail sales climbed sharply in March as re-openings continued, the weather improved, and fresh fiscal stimulus funds were sent out. This data is another indication of the scale of the dramatic acceleration that is underway in the U.S. economy. Spending will increasingly be tilted towards services, including restaurants, that are re-opening ahead, while some other retail sales categories will benefit from a return to in-store shopping.”
What’s notable is that despite the stronger than expected retail recovery, gold prices did not fall. Instead, they gained 0.73% on the day after the figures were revealed. With strong indications that the precious metal is firmly back in the driving seat, buy now to add to your portfolio.