Sharp spike in the precious metals along with a sharp drop in the US dollar. CPI & Retail sales data just released. Here’s the latest…
Dual data releases this at 8:30 a.m. EST (CPI & Retail Sales).
Overnight, gold and silver showed strength but were fading up until the release.
Then at 8:30 a.m. when the data hit the tape, gold and silver caught a major bid:
The dollar caught a major dump:
Volume is nice in gold and silver:
As far as retail sales:
From Zero Hedge – Following August’s slump (worst since Jan ’16), September’s retail sales data was expected to surge 1.7% MoM (thanks in large part to the spike in auto sales) but it disappointed with a 1.6% spike (still the most since March 2015).
U.S. retail sales jumped last month by the most in more than two years as motor vehicles lost to hurricanes were quickly replaced and higher prices lifted receipts at gasoline stations, Commerce Department figures showed Friday.
The main drivers (as expected) were a surge in gas prices (biggest gain in 4 years) and auto sales (biggest since March 2015).
8 of 13 major retail categories showed a gain.
As Bloomberg reports, vehicle sales helped to drive the overall gain at retailers in September. Demand recovered after auto dealerships around Houston, among the top markets for new-vehicle sales, took a hit from Hurricane Harvey a month earlier. Industry figures released last week showed cars and light trucks sold in September at the fastest annualized rate since 2005.
The September report also showed the biggest monthly advance in sales at service stations since February 2013, reflecting a spike in gasoline prices as Houston-area refiners were forced to suspend operations in the wake of Harvey. The Commerce Department figures aren’t adjusted for price changes.
Excluding motor vehicles and gasoline, September sales increased a more moderate 0.5 percent. While analysts expect tropical storm-related distortions will continue for several months, underlying demand is expected to keep growing. Steady hiring and limited inflation are helping to sustain household spending, the biggest part of the economy.
Core CPI has now been below the Fed’s 2% mandate for 6 straight months, printing a 1.7% YoY gain in September (weaker than the expected 1.8% rise).
Headline CPI bounced back above 2% however, led by a 6.1% surge in Energy costs..
The index for all items less food and energy increased 0.1 percent in September following a 0.2-percent rise in August.
The shelter index rose 0.3 percent in September following a 0.5-percent increase in August. The indexes for rent and owners’ equivalent rent both rose 0.2 percent, while the index for lodging away from home increased 1.5 percent.
This is the lowest shelter inflation since April 2016…
The motor vehicle insurance index rose 0.5 percent in September; it has declined only once in the last 23 months.
The education index increased 0.3 percent, and the index for recreation rose 0.2 percent.
The indexes for alcoholic beverages, personal care, and tobacco also increased in September.
The index for new vehicles, which was unchanged in August, fell 0.4 percent in September.
The index for household furnishings and operations declined 0.3 percent, and the index for used cars and trucks continued to fall, declining 0.2 percent. The medical care index fell slightly in September, declining 0.1 percent as declines in the indexes for prescription and nonprescription drugs outweighed increases in medical care service indexes. The apparel index declined 0.1 percent in September.
Finally, Dear Janet Yellen – The index for wireless telephone services rose 0.4 percent in September, ending a streak of 14 consecutive declines.