Spot Gold extended gains to a two-week high of $4,169.58/oz. on Wednesday, as delayed US macro data added to expectations of an interest rate cut by the Federal Reserve next month.
US retail sales grew 0.2% month-over-month in September, falling short of market forecasts and following a 0.6% growth in August. This suggested a deceleration in consumer momentum.
Sales excluding food services, auto dealers, building materials stores and gasoline stations, which are used for GDP calculation, shrank 0.1% in September.
Meanwhile, US producer prices rose 0.3% month-over-month in September, in line with market expectations.
The data came after several Federal Reserve officials expressed support for a rate cut next month. Fed Governor Christopher Waller said on Monday that the US job market was weak enough to warrant another 25 basis point rate cut in December.
And, New York Fed President John Williams said that a near-term rate cut remained possible, with labor market weakness posing a higher risk than elevated inflation.
Markets are now pricing in about an 85% chance of a 25 basis point Fed rate cut in December, compared to a 30% chance a week earlier.
Spot Gold was last up 0.73% on the day to trade at $4,160.71 per troy ounce.
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