Gold, Silver Rally as Weak Retail Sales Dampen Rate Hike Odds

Gold and silver prices are rising as weak U.S. retail sales data cuts the odds of a Federal Reserve rate hike in September.

The latest numbers show July retail sales fell 0.6%, against expectations for a 0.1% increase, while the University of Michigan's preliminary August consumer-sentiment index fell to 51.0 from 55.2.

This has pushed the market-implied probability of a September Fed rate hike down near 29%, from about 34% on Thursday night.

Despite this, the 10-year Treasury yield remains near the 4.7% area as crude oil rose and traders look ahead to the August employment and inflation reports that will arrive before the September Fed meeting.