The US retail sales advanced more than expected during the previous month since Americans bought automobiles and a range of other significant goods, hinting that economic growth was gaining momentum despite a weak job creation. According to the Commerce Department release made on Tuesday, retail sales rose 0.5% in May after surging by an unrevised 1.3% in April. It is the second straight month of lifted gains from a year ago. The gains were spurred mainly by non-store retailers, online shopping and gasoline stations spending. Compared with a year earlier, the total amount of sales, in turn, expanded 2.5%. That is highly above the annual rate of inflation, which currently equals 1% this year. Overall, retail sales have strengthened considerably during the past two months despite a slow start at the beginning of the current year. Meanwhile, stabile gains in consumption will spur the economy helping to accelerate from a weak beginning at the start of the year and strengthening forecasts made by Federal Reserve officials that the economic slowdown is temporal. Moreover, a pickup in wages also will help ensure that households remain a mainstay of the economic expansion.
Although there were growing concerns over the strength of the Canadian economy, mostly amid rather weak expectation results of April's data, the latest employment change figures surprised with their positive readings. As a result, these concerns should ease, as stronger employment data should diminish Bank of Canada's willingness to cut interest rates. A total of 13,800 new jobs were added in May, after having unexpectedly fallen to -2,100 in April, as reported by the Statistics Canada. According to expectations, the employment change was likely to rise only up to 1,800 during the previous month, but the upbeat data definitely brings more brightness in the overall Canadian economic activity. Meanwhile, the strong jobs figures also sparked a decline in the unemployment rate, as it dropped to an almost one-year low in May, namely from 7.1% to 6.9%. Consequently, the so-called Loonie grew stronger with the release of the data, having risen up to 1.276 against the US Dollar. Meanwhile, being at 6.9%, the Canadian unemployment rate demonstrates the lowest figure since July 2015. The decline was influenced by a drop in the participation rate which slipped slightly to 65.7 from 65.8, but was mostly drive by strong growth in fulltime employment.
Upcoming fundamentals: Major data releases in the US
Gold surges on Wednesday
Daily chart: The bullion scored gains for the fifth consecutive trading session on Tuesday, as it ended day's trading at 1,285.93. For comparison, the yellow metal was worth 1,243 on June 7. If this channel up movement continues, the metal will be at the 1,290 price today. However, it faces the weekly R1 at 1,289.03, and if this resistance is broken, the bullion would have a clear way north above the 1,300 mark, as the next resistance is at 1,305.22. Aggregate technical indicators forecast a continuation of the surge today.SWFX traders increase their bearish positions even more on Wednesday
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of gold at 1,275 by the end of August
Traders who were asked regarding their longer-term views on gold between May 15 and June 15 expect, on average, to see the metal around 1,275 by the end of August. Generally, 64% (+1%) of participants believe the price will be generally above 1,250 in ninety days. Alongside, 28% of those surveyed reckon the price will trade in the range between 1,100 and 1,250 over the next three months