Economic data in focus after disappointing UK sales figures

Today’s UK retail sales figures came in significantly below expectations and continued to show the ongoing trend while further highlighting the negative impacts of recent supply constraints, labour shortages and rising energy costs on the economy as a whole. It remains to be seen whether today’s US and Canadian retail sales will show a similar pattern or if we will see more resilience from those economies but it's clear that recent data is adding even more pressure to the upcoming central bank decisions where members will have to address rising inflation and its potential ramifications.

Gold approaches $1800 resistance as USD continues to retreat

While gold has experienced some significant volatility in recent times with the price fluctuating within a $40 range, the latest pullback of the US Dollar has favoured the precious metal and helped it recover. Gold is once again approaching the upper limit of the recent trading range as moods in markets remain uncertain after mixed European PMI’s and ahead of US data. While the price is up almost 1% from yesterday’s low, the $1800 area acted as a resistance in the past and could be an important level to keep an eye on moving forward, particularly if the situation in stock markets were to change.