FXstreet.com (Barcelona) - The recently released disappointing US retail sales data led to a spike in risk aversion and subsequently the price of gold futures, as investors rush to the safety of alternative investments. Currently the most active gold future for August trades back down at $1224.30 directly following a jump to a new high of $1230.80.
The economic recovery over the US is being questioned by the market following the 1.2% drop off in consumer spending, the biggest fall since September of the previous year. Americans slashed spending on everything from cars to clothes to building materials, as auto sales falling 1.7% over the month. With consumer spending accounting for a large portion of total economic activity, investors are worried that the economic recovery will be less robust than previously expected.
