DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Gold traded near its session highs after new data showed that spending by American consumers rose more than expected in August. The metal climbed above $4,350 before easing slightly while retaining a gain of more than 1% for the session.

The U.S. Commerce Department reported Wednesday that retail sales increased 1.2% in August. That followed an unrevised decline of 0.6% in July, marking a sharp shift in the monthly headline figure.

The August result exceeded the consensus forecast from economists, who had projected a 0.8% increase. The stronger reading placed consumer spending above expectations for the latest reporting month.

The report also showed that retail sales increased 6.0% from a year earlier. Economists had expected the annual figure to rise 4.7%, leaving the reported result above the consensus estimate.

July’s annual retail sales increase remained unrevised at 5.0%, according to the report. The August annual reading therefore came in above both the previous month’s figure and the expectation cited by economists.

Core retail sales delivered an even stronger monthly result. Sales excluding vehicles rose 1.4% in August, substantially exceeding the consensus projection for a gain of 0.5%.

The July core sales figure was revised downward to a decline of 0.2%. The August advance followed that revised contraction and showed a considerably stronger monthly reading for sales after vehicle purchases were removed.

Gold moved higher as the retail sales figures reached the market. Spot gold spiked to a session high of $4,353.78 at around 7:30 a.m. ET, according to the market report.

After touching that high, spot gold last traded at $4,340.98. That price represented a gain of 1.10% for the session and kept the precious metal close to its highest level of the trading period.

The market action placed gold firmly above $4,300 an ounce while investors absorbed the latest evidence on American consumer spending. The metal remained near session highs despite the retail sales report exceeding economists’ expectations across several major measures.

The headline monthly number, the annual result and the core reading all surpassed their respective forecasts. August retail sales rose 1.2% against expectations for 0.8%, while annual sales gained 6.0% against a projected 4.7%.

Core sales provided the widest gap between the reported increase and the consensus estimate among the monthly figures presented. The 1.4% advance compared with economists’ expectation for a 0.5% gain.

The report also offered a contrast with July across both headline and core monthly sales. Headline sales had declined 0.6% in July, while the revised core figure showed a 0.2% decrease for that month.

August reversed those monthly declines, with headline sales rising 1.2% and core sales advancing 1.4%. The Commerce Department left the July headline reading unrevised while lowering the previously reported core result.

In the gold market, the session high of $4,353.78 stood modestly above the last reported price of $4,340.98. Even after pulling back from the peak, spot gold maintained its 1.10% session advance.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.