Gold built on Friday's bounce and attracted follow-through buying during this morning's Asian-Pacific session. Gold traded down towards $4,300 early on Friday but then staged a rally which saw it burst above $4,400 before retreating again. Gold had a strong start to the month having repeatedly tested support around $4,000 throughout July. But it has struggled to hold above $4,400 making it a frustrating time for the bulls.
Nevertheless, last Thursday it hit its highest level since early June, coming within a cent or so of $4,450 before pulling back once again. Friday's US Retail Sales dropped 0.6% in July, the first fall in nine months and the largest monthly decline since May last year.
Source: TN Trader
Meanwhile, Consumer Sentiment dipped to 51 in August from 55.2 previously, and Inflation Expectations ticked up. Coming straight after the softer inflation numbers, all the data helped to temper expectations for an imminent Fed hike. This kept pressure to the downside for the dollar which supported both gold and silver.
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