Nov 16, 2021 11:53PM ET
By AnalysisWatch
Gold prices rose in Asia on Wednesday morning, but remained near their recent lows as strong US retail sales pushed the dollar near a 16-month high.
Gold futures were 0.14% higher at $1,856.70 at 11:48 p.m. ET (4:48 a.m. GMT).The dollar, which normally moves inversely to gold, rose slightly on Wednesday to near a 16-month high.
Data released on Tuesday showed US retail sales rose 1.7%, which was better than expected. Core retail sales rose 1.7%, stronger than expected.
Meanwhile, Federal Reserve Bank of St. Louis President James Bullard said on Tuesday that the Fed should "take a more hawkish direction" in preparation for high inflation in the long run. Persistently high inflation is raising bets that the Federal Reserve could raise interest rates sooner than expected.
In the United Kingdom, better-than-expected labour market data from the Office for National Statistics allayed fears that the Bank of England could raise interest rates. The unemployment rate fell to 4.3% in September.
Reserve Bank of Australia Governor Philip Lowe also said that the latest data did not warrant a rate hike in Australia. Australia's wage price index rose 2.2% in the third quarter from a year earlier and 0.6% from the previous month.
In other precious metals, the spot silver price rose by 0.6%, while platinum and palladium each rose by 0.3%.
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