On Wednesday gold futures extended rally to hit a three-month high, after data showed retail sales in the U.S. rose less than expected in September, undermining optimism over the strength of the economy and dimming the case for higher interest rates.
December Comex gold hit an intraday peak of $1,176.00 a troy ounce, the highest level since June 30, before trading at $1,174.10 during U.S. morning hours, up 0.75%.
A day earlier, gold inched up 90 cents, or 0.08%.
December Comex silver was last up 1.21%, trading at $16.110 an ounce.
Earlier, the U.S. Commerce Department said retail sales climbed by 0.1% last month, below expectations for a rise of 0.2%. Retail sales for August were revised down to a flat reading from a previously reported increase of 0.2%.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, declined 0.3% in September, worse than forecasts for a fall of 0.1%. Core sales in August decreased 0.1%, whose figure was revised from a previously reported gain of 0.1%.
Core sales correspond most closely with the consumer spending component of the government's gross domestic product report. Consumer spending amounts for as much as 70% of U.S. economic growth.
Separately, the Commerce Department said that producer prices dipped by a seasonally adjusted 0.5% last month, worse than the expectation for a drop of 0.2% and after holding flat in August.
The core producer price gauge pushed down by a seasonally adjusted 0.3% in September, below expectations for a rise of 0.1% and following an increase of 0.3% a month earlier.
The downbeat data fanned hopes that Fed officials could delay raising interest rates until the first half of 2016.
