Gold Soars to Near $4,400 as Weaker Retail Sales Data Weighs on Dollar

Gold prices continued to rise, nearing $4,400 an ounce as weaker US retail sales data weighed on the US dollar. The yellow metal has been in a two-week advance and showed no signs of slowing down.

The latest US data revealed declines in both consumer sentiment and retail sales, easing fears of an imminent rate hike that typically hurts non-yielding bullion like gold. With the US dollar down by 0.2% on Monday, gold became cheaper for most buyers.

However, volatility persists in the global energy supply outlook due to ongoing tensions between the US and Iran. Despite this, some vessels exiting the Strait of Hormuz with satellite transponders turned off have helped keep global energy prices in check.

Gold's recovery above $4,000 an ounce has been driven by renewed investor appetite and increased central bank purchases from countries like China. Analyst Justin Lin notes that gold will require a meaningful break above $4,400 to confirm its positive momentum can continue.