(Bloomberg) — Gold edged toward $4,400 an ounce as traders weighed the Federal Reserve\u2019s interest-rate path after the economy\u2019s main engine showed signs of cooling.<\/p>\n
The latest US data showed declines in both consumer sentiment and retail sales, helping ease fears of an imminent rate hike, which is typically a headwind for non-yielding bullion. Still, the risk of monetary tightening remains as oil prices climbed after the US threatened to impose economic measures on Iran.<\/p>\n
Federal Reserve Bank of Chicago President Austan Goolsbee said he\u2019s encouraged by a recent cooling in inflation, but wants to see more of the same in coming months to be sure it\u2019s falling back to the central bank\u2019s 2% target.<\/p>\n
Earlier, data showed the University of Michigan\u2019s preliminary August sentiment index slid to 51 in August. The median forecast from a Bloomberg survey of economists had projected 55. Meantime, retail sales dropped in July by the most in more than a year.\u00a0<\/p>\n
Gold\u2019s recovery above the key $4,000-an-ounce threshold in recent weeks has been driven by renewed investor appetite and an increase in central bank purchases, notably from China. Gains earlier this week took the metal above its 100-day moving average for the first time since April, although it has since returned below the threshold.<\/p>\n
\u201cThe macro setup has turned more constructive, although positioning is less supportive and technical momentum is starting to look stretched after the recent rebound,\u201d Christopher Wong, a strategist at Oversea-Chinese Banking Corp., said in a note. \u201cConsolidation risks remain around current levels.\u201d<\/p>\n
Spot gold traded 0.6% higher at $4,374.24 an ounce at 4:33 p.m. in New York. Silver rose 0.3% to $64.66 an ounce. Platinum and palladium both gained. The Bloomberg Dollar Spot Index, a gauge of the US currency, slipped 0.2%.<\/p>\n
–With assistance from Mark Burton and Robin Paxton.<\/p>\n
More stories like this are available on bloomberg.com<\/p>\n
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