Gold rose on Monday after US retail sales missed the forecast. Economists had estimated a rebound in core and headline retail sales, but a fall in the food services sector dragged the index lower. Overall US sales continued to show a strong pace of growth.
The yellow metal has risen as investors are seeking safety as global stock continue to drop. Geopolitics events have snowballed around the globe and traders have to value the possible impacts of a trade war between the US and China, Brexit negotiations, monetary policy divergence between major central banks and a global growth slowdown.
The energy market is also in turmoil as events during the weekend have put Saudi Arabia on a public relations offensive with a treat of economic retaliation.
Gold has surged over 1 percent on Monday taking advantage of the US dollar softness following the retail sales data miss. The minutes from the September Federal Open Market Committee (FOMC) meeting on Wednesday will bring more insights into the central bank’s plans and could reverse the direction of the greenback, putting pressure on gold.
