Gold prices surge above $4,300 on weak U.S. spending data

Gold prices climbed sharply back above $4,300 an ounce after fresh U.S. economic data revealed softer-than-expected consumer spending.

October’s retail sales showed no growth, missing projections for a slight increase and reflecting a broader trend of subdued economic momentum.

Though annual retail sales still posted a healthy 3.5% gain, the monthly stagnation hinted at potential cracks in consumer demand.

However, core retail sales, which exclude vehicles, exceeded expectations with a 0.4% rise, suggesting some underlying resilience.

The labor market also presented a mixed picture.

Despite November job creation beating forecasts with 64,000 new positions, the uptick in unemployment to 4.6%—alongside the lack of October data due to a government shutdown—underscored a decelerating employment trend.

Following the economic releases, gold initially saw some volatility but continued to hold steady around the $4,300 mark. Gold rallied as high as $4,327 per troy ounce in early trading on Tuesday.

The precious metal appears to be finding a new support level, drawing modest bullish sentiment as investors weigh economic uncertainty against lingering labor strength.

Meanwhile silver continued to trade north of $63 per ounce, not far from all-time highs. The argent metal is up nearly 120% year-to-date after falling below $29/oz in January.