Gold price today still increased above 2300 USDGold prices have surged on weaker-than-expected US retail sales and expectations of lower interest rates. Here are the key factors:
Weak retail sales:
US retail sales report was lower than expected, suggesting a decline in consumer spending.
This raises concerns about economic growth, which could lead to economic stimulus or looser monetary policy from the Federal Reserve (Fed).
As a result, gold becomes more attractive as a safe haven asset.
Expect lower interest rates:
With retail sales weak, the Fed could keep interest rates low or even cut them to support the economy.
Lower interest rates reduce the opportunity cost of holding gold, which provides no interest or dividends.
A weaker US dollar due to lower interest rates also increases the value of dollar-denominated gold in international markets.
