Gold Marches Higher On The Back Of More Bleak Economic Data

By Glenn Dyer | More Articles by Glenn Dyer

Gold prices ended higher well above $US1,700 an ounce on Friday as more poor US economic figures underlined the damage from the COVID-19 pandemic.

Friday’s US data for retail sales and industrial output was overwhelmingly weak.

US retail sales plunged by a record 16.4% in April and fell 16.2% excluding automobile sales and petrol prices after sales slumped by a revised 8.3% in March, up from the originally reported 8.7% drop.

The data showed that retail sales tumbled in every category except online shopping. It was the worst back-to-back declines in retail sales in modern American history and much worse than the 12.5% slump forecast in a poll by MarketWatch.com.

At the same time, industrial production slumped sharply as well, down a record 11.2% as manufacturing output fell by a steeper 13.7%.

The Federal Reserve data revealed the most severe plunge on record last month with factories, mines and utilities battered by the coronavirus pandemic.

Comex gold for June delivery jumped $US15.40, or 0.9%, to settle at $$US1,756.30 an ounce on Friday.

Prices for the most-active contract marked their highest settlement since April 14, according to data firm FactSet.

Comex July silver surged 91.4 cents, or 5.7%, to end at $US17.07 an ounce, settling above the significant $US17 support level for the first time since early March.

For the week, gold was up by a solid 2.5% based on the most-active contract, while silver jumped by 8.2%.

Comex July copper fell by 0.7% to $US2.3305 a pound, for a weekly loss of 3.1%.

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

View more articles by Glenn Dyer →