Gold Prices Slips vs Rising Dollar as US Retail Sales Grow, China Slowdown ‘Concerning’

Gold Prices Slips vs Rising Dollar as US Retail Sales Grow, China Slowdown ‘Concerning’ By  – Financial Sense

GOLD PRICES slipped to 7-session lows against a rising Dollar in London on Friday, dipping below $1235 per ounce as the US reported better-than-expected retail sales growth but China’s economic data missed analyst forecasts.

While the US said retail sales outside automobiles, gas and food rose strongly in November, China – the world’s second-largest economy and the No.1 gold consumer nation – reported its slowest annual pace of retail sales growth since 2003 and the slowest rise in industrial output since New Year 2016.

Copper and crude oil prices fell on China’s news, holding a 15% and 8% drop for 2018 to date respectively.

“The need for cutting taxes, fees and interest rates has further increased,” reckons one Chinese bank’s chief economist.

“Insufficient demand has become the main problem.”

“Until the Opec [oil cartel’s output] cuts start kicking in, the [energy] market is oversupplied in the short term,” reckons Japanese group Mitsubishi.

“If China is slowing down, that’s definitely a concern.”

“Another slow day for Asia with very little to report,” says the latest gold trading note from Swiss refiners and finance group MKS Pamp, with only “tiny flows” in the market.

Shanghai gold prices held firm in Yuan terms overnight, keeping the premium over London quotes – a measure of local demand and supply conditions – above its historic average of $9 per ounce.

gold price

Chart of China gold premium over London. Source: World Gold Council

Silver prices dropped Friday morning below $14.60, some 1.5% beneath yesterday’s 6-week high.

Platinum prices also slipped below last week’s finish, trading at $792 per ounce – some 4.5% above August’s 15-year low.

Korean auto-giant Hyundai said this week it’s investing $6.7bn to grow production of fuel-cell vehicles – needing platinum as a catalyst for making energy by mixing hydrogen with oxygen – to half-a-million per year by 2030.

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