Gold and Silver Prices Rise as Retail Sales Miss Expectations

Gold and silver prices rose on Friday's U.S. session as July's retail sales figures came in below expectations, bolstering bets that the Federal Reserve will pause interest rate hikes in September.

The retail sales data showed a 0.6% decline versus an anticipated 0.1% increase, with excluding autos resulting in a 0.3% drop. This miss follows softer CPI and PPI readings earlier in the week, pushing market-implied odds of a 25-basis-point rate hike in September down to around 32-33%, from nearly 50% a week ago.

The shift in market positioning towards a Fed hold gained momentum after the retail data release. As a result, spot gold hovered around $4,376.40 per ounce, up 0.60%, while spot silver traded at $64.740, with a gain of 0.66% on the day.

The Strait of Hormuz continues to be a major geopolitical concern, with two UAE tankers being attacked while attempting to transit the strait and Washington announcing new economic-isolation measures against Iran. Brent crude was near $88.50 a barrel, with U.S. crude around $82.80, keeping energy risk at the forefront of Fed deliberations.