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Daily digest market movers: Gold shrugs off strong US Retail Sales and elevated US yields

guntur360
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  • March's US Retail Sales saw a 0.7% MoM increase, surpassing the expected 0.4%. This rise contributes to a 2.1% growth in Q1 2024 compared to last year's period, signaling strong consumer activity.
  • Retail Sales in the control group, which provides a more accurate measure by excluding volatile items, surged from 0.3% in February to 1.1% MoM in March, significantly exceeding expectations of a 0.4% increase.
  • Gold’s price remains high even though US Treasury yields surged more than 10 basis points (bps) in the belly and long end of the yield curve.
  • In addition, the US Dollar Index (DXY), which tracks the buck’s performance against a basket of six other currencies, gains 0.20% to 106.22, levels last seen in November 2023.
  • New York Fed President John Williams said that his baseline scenario projects rate cuts “will likely start this year.” He thinks the policy is restrictive, adding that strong fundamentals are driving consumer spending.
  • Data from the Chicago Board of Trade (CBOT) suggests that traders expect the Fed funds rate to finish at 4.965% in 2024.


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