U.S. Retail Sales Post Biggest Rise In Seven Months. The dollar inched slightly lower on Wednesday but held most of its gains made after U.S. retail sales data suggested the economy continued to gain momentum in the third quarter and kept alive hopes for another Federal Reserve interest rate increase this year. U.S. retail sales rose 0.6% and core sales rose 0.5% in July beating economists’ estimate of a 0.4% and 0.4% reading. Minutes from the Fed’s July meeting will be watched for clues on the timing of rate hikes as well as whether the Fed is likely to announce a reduction in its balance sheet at its September meeting.
Gold Falls On U.S. Retail Sales Data. Gold prices were moderately lower prior to the release largely due to profit-taking pressure after prices hit a nine-week high on Friday. But, immediately after the data was published, December Comex gold fell even further, trading at $1,274.20, down 1.26% on the day. Gold prices firmed early on Wednesday as the dollar weakened slightly, with investors waiting for the release of minutes from the U.S. Federal Reserve’s last meeting in July for clues on the pace of potential interest rate hikes.
Oil Prices Edge On Falling US Crude Inventories. Oil prices rose early on Wednesday on a fall in U.S. crude inventories, although analysts said that markets were still being weighed down by general oversupply. Brent crude futures, the international benchmark for oil prices, were at $51.01 per barrel at 0023 GMT, up 21 cents, or 0.4 percent, from their last close.
By MEX Group Team
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