Gold Holds Above $1,200 as U.S. Retail Sales Cloud Rates Outlook

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Gold held near a five-week high amid speculation that the Federal Reserve will push back a decision to raise interest rates after data showed U.S. retail sales were little changed last month.

Bullion for immediate delivery traded at $1,214.46 an ounce at 9:08 a.m. in Singapore from $1,215.75 on Wednesday, when the metal surged to $1,218.99, the highest since April 7, according to Bloomberg generic pricing. Gold in Shanghai jumped.

Gold has risen in May as the dollar fell on speculation the Fed isn’t getting any closer to raising borrowing costs for the first time since 2006. Retail sales barely budged in April, missing projections for a small gain. A liftoff in rates seems most probable in the late summer, according to David Altig, research head at the Fed Reserve Bank of Atlanta, who said it would be better for the bank to err on the side of waiting too long to raise rather than to tighten too soon.

Source : Bloomberg