Spot gold prices jumped near 2-week highs at $1232 per ounce Friday lunchtime in London as weak US retail sales and inflation data saw the Dollar drop hard on the forex market.
Consumer prices rose 1.6% in July from a year earlier, the Bureau of Labor Statistics said – the weakest inflation since before Donald Trump won the presidential election last November – while retail sales fell for a second month running, also defying analyst forecasts.
The Euro jumped half-a-cent towards this week’s 2-month highs versus the US currency, while the Japanese Yen jumped to a 2% gain for this week at its strongest level since 3 July.
The spot gold price outpaced them both, however, rising to a weekly gain for Eurozone and Japanese investors and adding 0.6% from last Friday against the British Pound.
Major government bond prices jumped having weakened badly since the US Federal Reserve raised Dollar interest rates to a ceiling of 1.25% this time last month.
That pushed bond yields sharply lower across the board, with 10-year US Treasurys offering its lowest rate so far in July at 2.28%.
This post was published at FinancialSense on 07/14/2017.
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