PRECIOUS-Gold retreats as upbeat U.S. retail sales strengthen dollar
· Gold retreated on Tuesday from a more than five-month peak as upbeat U.S. retail sales data for October strengthened the dollar, making the metal more expensive for holders of other currencies.
· Spot gold fell 0.6% to $1,851.80 per ounce by 13:41 ET (1841 GMT), having earlier hit $1,876.90, its highest since June 14.
· U.S. gold futures settled 0.7% lower at $1,854.10.
· Retail sales in the United States accelerated more than expected last month, giving the economy a lift at the start of the fourth quarter and sending the dollar to a 16-month high.
· The report shows consumption can handle high prices and remains pretty strong, which is positive for risk appetite, said Edward Moya, senior market analyst at brokerage OANDA.
“This was a pretty strong retail sales beat so there are mounting risks to the outlook. It will be a slower grind higher (for gold), but we should still have the all-clear for a move towards $1,900,” Moya said.
· Gold has added more than 2% since last Tuesday after data showed U.S. consumer prices surged in October.
· “The notion that U.S. inflation has yet to peak should keep bullion well bid, as long as the Fed doesn’t veer from its patient approach to any rates lift off,” said Han Tan, chief market analyst at Exinity.
· Richmond Federal Reserve President Thomas Barkin said on Monday the Fed will not hesitate to raise interest rates, but the central bank should wait to gauge if inflation and labor shortages prove to be more long-lasting.
· Rate hikes tend to weigh on gold, as they push bond yields up, raising the metal’s opportunity cost.
· Silver fell 0.9% to $24.81 per ounce and platinum dropped 2.2% to $1,063.50.
· Palladium was up 0.5% at $2,163.93, hitting its highest in a month.
· U.S. retail sales surge as holiday shopping starts, brightening economic outlook
· Dollar at 16-month high after robust U.S. retail sales data
· TREASURIES-Yields rise on strong retail sales, before 20-year auction
· Bitcoin briefly drops below $60,000 as major cryptocurrencies fall
· Yellen says U.S. could hit debt limit on Dec. 15, giving Congress more time to strike deal
· Fed officials say high inflation weighing on consumers and needs to be controlled
Federal Reserve officials said on Tuesday they are vigilant of the ways that higher inflation can affect U.S. households and dampen consumer sentiment and want to get it under control.
Two other Fed officials also said they are vigilant of the ways that higher inflation can affect U.S. households and dampen consumer sentiment and want to get it under control.
· Fed's inflation debate heats up as Biden nears Fed chair pick
Biden, who is weighing whether to keep Jerome Powell as Fed chair for another term or elevate Fed Governor Lael Brainard to the post, said Tuesday he would make the final call in about four days.
· Biden says he will make final decision about Federal Reserve chair in about 4 days
· Jim Cramer sees signs that inflation pressures are easing, believes Fed policy approach is right
CNBC’s Jim Cramer said Tuesday he’s encouraged by a number of inflation-related developments, contending they lend further credence to Federal Reserve Chairman Jerome Powell’s outlook that many price pressures will be temporary.
The “Mad Money” host pointed to declines in prices for chemicals that serve as economic “building blocks” such as polyethylene, as well as the fact that oil has been “stuck” in the mid-to-low $80s per barrel instead of breaking out near $100 like some had predicted.
“I don’t think Powell needs to slam the brakes on the economy,” Cramer said, referring to suggestions that the central bank needs to raise interest rates in response to hot inflation data. “Despite what you hear from the inflationistas and the media, the weight of the evidence is finally going Powell’s way—team transitory is going to win.”
· Bank of Canada deputy says rate hike may not come as soon as expected
· Latest ECB rate-hike pushback turns euro into falling knife
· Record low Turkish lira teeters on the edge as rate cuts sting
Turkey's lira fell as much as 3.7% to a new intraday record low of 10.45 to the dollar on Tuesday, prompting some analysts to warn of another currency crisis due to a central bank seen as bowing to political pressure and slashing interest rates.
The lira has fallen 28% this year, the weakest performer in emerging markets (EM), mainly on investor concerns about President Tayyip Erdogan's influence on monetary policy and what many call a premature and risky monetary easing cycle.
The currency ended the day down 2.8% at 10.35 against the dollar, its largest daily percentage fall in a month and a record closing low.
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