Gold prices continue to head higher, and has posted slight gains in the Monday session. In North American trade, the spot price for an ounce of gold is $1341.40, up 0.22% on the day. There are no US indicators on the schedule, as the markets are closed in observance of Martin Luther King Day. On Tuesday, the sole indicator is the US Empire State Manufacturing Index.
Gold has reeled off five straight winning weeks, taking advantage of a broadly lower US dollar. Gold has climbed an impressive 3.0% in January, as the metal is trading at its highest level since September 2016. Although US numbers have generally been strong of late, this has not stemmed the gold rally. If major currencies such as the euro and yen continue to make inroads against the dollar, traders can expect the gold rally to continue.
On Friday, gold prices pushed higher, as the markets were not impressed with US consumer numbers. CPI slowed to 0.1%, down from 0.4% a month earlier. Core CPI was stronger, improving to 0.3%. Both indicators were within expectations, but pointed to weak inflation levels. On the bright side, consumer spending remained strong. December retail sales, boosted by Christmas shopping, were up 5.4% compared to a year ago. Although investors were not impressed with the December data, as the euro rally continued, the spending numbers point to a strong finish for the economy in 2017. Earlier in the week, gold gained ground after hawkish ECB minutes raised speculation that the ECB could wind up its asset purchase program later this year. The minutes sent the US dollar to lower ground.
