Related Articles
Share it
Gold was underperforming earlier today as worries over Moody’s decision to downgrade a number of European countries encouraged investors to flock back to the perceived safety of the US dollar and Treasuries.
However, investor appetite for gold was later revived by the release of weaker-than-expected US retail sales data, which cast doubts over the sustainability of the recent trend in strong macro data. This could also pave way for further QE by the Fed. Gold continues to remain sensitive to moves in EUR/USD, as well as risk aversion. The precious metal managed to edge higher after US retail sales for January showed demand rising only 0.4%, trailing expectations for a 0.8% increase.
