Gold price traded higher as the U.S. dollar declined after the weaker-than-expected U.S. retail sales. The U.S. retail sales were flat in April, missing expectations for a 0.2% increase, after a 1.1% gain in March. March's figure was revised up from a 0.9% increase.
The reading was driven by lower automobiles and gasoline purchases. Automobiles sales decreased 0.4% in April, while gasoline station sales decreased 0.7%.
Retail sales excluding automobiles increased 0.1% in April, missing forecasts for a 0.5% rise, after a 0.7% gain in March. March's figure was revised up from a 0.4% rise.
These figures are adding to concerns that U.S. economy is losing momentum, and the Fed might delay its first interest rate hike.
A selloff in global government bonds also supported gold price.
June futures for gold on the COMEX today rose to 1218.10 dollars per ounce.