Gold fell to its lowest level in 3-months on Wednesday, as U.S. Retail Sales figures blew well past market expectations.
XAUUSD dropped to an intraday low of $1,769 today as data released by the Commerce Department showed that sales rose by 5.3% last month.
Retail sales, which account for close to two thirds of U.S. GDP rose well above the forecasted 1.1%.
This rise helped strengthen the Dollar, which moved to a low of 1.3829 today against Sterling.
GBPUSD moved to its highest level since 2018, after trading at a high of 1.3951 yesterday. However, today’s boost saw Gold prices suffer as a result.
Britain preparing to reopen economy
After over 2 -months of lockdowns, British Prime Minister Boris Johnson today stated that the government would outline a way forward in the upcoming days.
In an address to the media, the PM stated that, “We’ll be setting out what we can on Monday 22nd about the way ahead and it’ll be based firmly on a cautious and prudent approach to coming out of lockdown in such a way as to be irreversible”.
The PM also stated that this would be the final national lockdown, whilst warning for a cautious approach.
Britain has recently seen COVID-19 cases drop to their lowest levels since July, with over 15 million people also receiving the first dose of the vaccine.
Higher UK inflation sends FTSE 100 lower
Sticking with the UK, figures released today by the office for National Statistics showed that inflation had risen higher than expected.
Britain’s Inflation rate rose to 0.7% in January, up from December’s 0.6%, with food prices, Furniture and household goods being the biggest contributor.
As a result of the rising consumer prices, the London’s main index the FTSE 100 closed lower on Wednesday, falling 0.56%
The fall comes despite the news that the government will lay out its plans to re-open the economy in an address from the PM next week.
Quote of the day – “Never, ever argue with your trading system”Michael Covel
To stay up to date with the markets we encourage traders to view our Trade Gate Hub for more real time insights into Crude, Gold and many other markets.
Senior Market Analyst