Gold futures experienced a significant uptick on Thursday, marking their third consecutive session of gains, as both the dollar and bond yields decreased following disappointing retail sales figures.
The dollar index, which had surged to 109.38 earlier in the day, fell to 108.83 by early afternoon. It was last noted at approximately 108.95, reflecting a decline of 0.13% from the previous day's closing figures.
The easing of the dollar was influenced by statements from several Federal Reserve officials expressing confidence that inflation is trending towards the Fed's annual target of 2%.
Gold futures for January delivery rose by $33.90, or about 1.25%, closing at $2,746.40 per ounce.
Silver futures for January concluded at $31.523 per ounce, an increase of $0.204, or 0.65%, while copper futures for January ascended to $4.4090, reflecting a gain of $0.0495, or 1.14%.
In another development, the core consumer price index showed an unexpected deceleration to an annual growth rate of 3.2% in December, down from 3.3% in November. This has fueled speculation that the Federal Reserve might consider further rate reductions.
Several key Federal Reserve figures, including FOMC voting members Austan Goolsbee, president of the Chicago Fed, and John Williams of the New York Fed, along with non-voting member Thomas Barkin from the Richmond Fed, voiced their belief that inflation is on the decline, albeit gradually.
Data from the Commerce Department indicated that U.S. retail sales rose less than anticipated in December. The report highlighted a 0.4% increase in retail sales for December, following a revised 0.8% increase in November. Economists had projected a 0.6% rise.
Additionally, a report from the Labor Department revealed that initial claims for unemployment benefits in the U.S. exceeded expectations, rising to 217,000 in the week ending January 11th. This marks an increase of 14,000 from the previous week's adjusted figure of 203,000, surpassing economists' forecasts of a rise to 210,000.
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