World gold price morning of August 16: Slight decrease after US retail sales report

World gold prices fell slightly on the morning of August 16 after the latest data showed that US consumer spending grew as expected last month.

The US Commerce Department reported that retail sales rose 0.5% in July, compared to a 0.6% increase in June. This figure was completely in line with economists ' forecasts. Over the past 12 months, retail sales rose 3.9%, higher than the expected 3.5% but lower than the 4.4% increase in June.

Core sales (excluding autos) rose 0.3% in July, as expected and slower than June's upwardly revised 0.8% gain.

What’s notable about this report is that the numbers were revised up from the previous report, making the actual growth better than what the current numbers indicate, said Chris Zaccarelli, chief investment officer at Northlight Asset Management.

As consumers continue to spend and businesses maintain their workforces thanks to stable demand, the economic cycle will continue to operate, helping corporate profits and stock prices grow, according to Mr. Zaccarelli.

He said the stock market is currently high, inflation is rising and unemployment is rising. However, consumers are still spending, the economy is growing and the stock market is still rising. These are not ideal conditions for a strong growth, but they are enough for the market to continue its long-term upward trend, despite occasional corrections.

Spot gold fell to a session low of $3,332 an ounce shortly after the data was released but quickly recovered as the U.S. consumer sentiment index unexpectedly fell for August. Gold is currently trading around $3,338.67 an ounce, up 0.01% on the session.