Gold Rises as Metal Regains Safe Haven Title

Gold rose on Monday after US retail sales missed the forecast. Economists had estimated a rebound in core and headline retail sales, but a fall in the food services sector dragged the index lower. Overall US sales continued to show a strong pace of growth.

The yellow metal has risen as investors are seeking safety as global stock continue to drop. Geopolitics events have snowballed around the globe and traders have to value the possible impacts of a trade war between the US and China, Brexit negotiations, monetary policy divergence between major central banks and a global growth slowdown.

The energy market is also in turmoil as events during the weekend have put Saudi Arabia on a public relations offensive with a treat of economic retaliation.

Gold has surged over 1 percent on Monday taking advantage of the US dollar softness following the retail sales data miss. The minutes from the September Federal Open Market Committee (FOMC) meeting on Wednesday will bring more insights into the central bank’s plans and could reverse the direction of the greenback, putting pressure on gold.

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza