U.S Retail Sales Rose by 1.1% in September – October Report

Retails and foods services sales rose by 1.1% in September 2012 compared with August’s sales, and were above the sales at September 2011.This news may have contributed to the decline in gold and silver prices.  

The U.S. Department of Commerce published today its monthly report on the changes in the U.S. retail and food sales for September 2012.

This report adjusts for seasonal variances and holidays but doesn’t control for price changes. In September, the U.S. retail and food sales reached $412.9 billion, which is 1.1% above the sales in August and 4.8% above September 2011. The gasoline stations sales also rose by 2.5% in September compared to August and by 5.8% compared to September 2011. Total sales of gasoline in January – September 2012 reached $412.8 billion (not adjusted for seasonality) – an increase of 3.9% from the first nine months of 2011. This shows a moderate growth in the U.S demand for retail and consequently for energy commodities.

This means the total retails sales rose by a higher than expected pace; the growth in the demand for gasoline also increased by a moderately high rate. If this trend will continue, it could signal progress of the U.S economy and thus may affect commodities prices such as crude oil and natural gas. Further, the higher than excepted growth in the retail sales might suggest the U.S economy is progressing and thus may lower the chances of the Fed intervening again in the U.S market to help jump-start the economy. Therefore, this news may have contributed to the decline in the prices of precious metals.

The major energy commodities prices tumbled down today; the major exchange rates such as the Euro US dollar edged down. This means the news of the rise in retail sales and gasoline stations sales didn’t help rally energy rates.

Current Nymex crude oil price, short term futures (November 2012 delivery) is traded up by 0.64% to $90.16 per barrel as of 16:32*.

Euro to US dollar exchange rate is currently traded down to 1.2944, a 0.05% decrease as of 16:32*.

Current gold price, short term futures (November 2012 delivery) is traded at $1,735 per t oz. a $24.2 decrease as of 16:32*.

(* GMT)

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