Gold bugs might have reason to expect further gains after gold prices surged Wednesday on lackluster U.S. data.
Disappointing retail sales weighed down on the U.S. dollar this week, as the markets contemplated the possibility that a Federal Reserve rate hike may not happen as soon as expected. With the dollar lower, bullion rallied 2 percent on Wednesday and now trades back above the $1,200 mark.
"The main catalyst was the retail sales slumping," said Phillip Streible, senior market strategist at RJO Futures. "It disappointed a wide audience. Because of that, a rush was back into gold as the dollar sold off hard. It looks like [we] won't see a rate increase in the immediate future."