New numbers from the Commerce Department showed disappointing April retail sales, boosting expectations that the Fed will wait to raise interest rates. In response, COMEX gold jumped by $25.80 (2.2%) to close at a five-week high of $1,218.20/oz. Silver also had an impressive gain of 4.2% to finish at $17.22/oz. Meanwhile, U.S. stocks fell flat and the dollar had its worst day in a week.
The retail sales data showed Americans remained frugal with their spending in April despite lower gas prices, continuing a trend that has been intensifying since August of last year. Total retail sales were flat with just a 0.1% gain, while sales minus automobiles and gasoline rose 0.2% against an expected 0.4%. More was spent at restaurants and online, but less on automobiles, home furnishings, electronics, and fuel.
Retail sales over the past 12 months have fallen to a rate of 0.9%, the smallest 12-month gain since the end of the Great Recession in October 2009 – a fact that should alarm anyone.
At the same time, the global sell-off in bonds continues. According to Dow Jones Business News, “No one knows for sure what caused the great bond market rout of the past few weeks. More than $450 billion of value has been wiped out. … Eurozone bond markets have given back almost all the gains that they had made since the start of the year while U.S., U.K. and Australian bonds have also been caught up in the turmoil.” [emphasis added]
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About American Bullion
American Bullion, Inc. specializes in converting your IRA, old 401k, or other qualified retirement account to a self-directed IRA capable of holding physical gold coins and bars, known as a Gold IRA or Precious Metals IRA. We’ve pioneered a system to handle all the details for you, tax-free and hassle-free. Want to buy gold and silver and store it yourself, outside of your retirement account? Simple – we’ve insured and shipped millions of dollars’ worth of gold, silver, platinum, and palladium to thousands of homes just like yours. As a U.S. Mint nationally listed dealer, we strive to be the best Gold IRA company in the industry and guarantee every transaction is fast, simple, and secure. See our American Bullion Reviews page for testimonials from our many satisfied clients.