Spot gold fell 1.1% to $1,834.68 an ounce, while US futures fell 1.4% to $1,833.80.
US retail sales rose 3% in January from the previous month, highlighting economic resilience despite higher borrowing costs.
The increase in retail sales was “another sign that if the Federal Reserve wants to cool inflation, it’s going to have to raise interest rates to stifle some of this demand”said Jim Wyckoff, a senior analyst at Kitco Metals.
The figure comes after data on Tuesday showed the US consumer price index had risen 6.4% year-on-year, less than the 6.5% in December but more than the 6.2% expected. the economists.
Following the US data, the dollar index rose to the highest in more than a month, making gold more expensive for buyers using other currencies.
“In the event of a reacceleration of inflation and a return to faster interest rate hikes, gold and silver would suffer,” said Carsten Menke, Head of Next Generation Research at Julius Baer.
“Conversely, gold and silver would benefit if the Fed started cutting interest rates due to strengthening recession signals.”
Among other metals, spot silver was down 1.1% at $21.60 an ounce, platinum was down 1.6% at $916.14 and palladium was down 2.5% at $1,460.09.
Source: Ambito
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