Gains hold amid weak retail data and safe-haven demand
Peter Walden, News Editor
14 Aug 2014, 9:56 a.m.
Gold held onto small gains overnight as U.S. retail data announced on Wednesday an unexpected sales stall in July, perhaps pointing to a loss of economic momentum early in Q3. Gold’s positive movement yesterday and this morning has further confirmed investor sentiment towards the news, as gold becomes a more appealing safe-haven asset. In turn, July’s sluggish retail sales results have lessened some investor fears that the Fed may raise interest rates sooner than initially expected.
Global geopolitical tensions have continued to support the gold price. Despite Israeli and Palestinian factions in Cairo agreeing to extend a ceasefire for another five days more rockets were fired from Gaza, triggering retaliation from Israel.
Meanwhile, Ukraine have described Russia’s dispatch of an aid convoy advancing towards Rostov as a pretext to send military supplies to the rebels. Despite Russia claiming this as “absurd”, the European Union said the contents would need to be inspected before crossing the border. The UN reported on Wednesday that the death toll has climbed to at least 2,086 since the conflict escalated in mid-April.