U.S. has just released Retail Sales report for October. The report indicated that Retail Saes grew by 1.7% month-over-month compared to analyst consensus which called for growth of 1.4%. On a year-over-year basis, Retail Sales increased by 16.3% compared to analyst forecast of 12%.
S&P 500 futures are gaining some ground in premarket trading after the release of the better-than-expected Retail Sales report, but it looks that the stock market will need addiitonal positive catalysts to move to new highs.
Today, traders will also have a chance to take a look at Industrial Production and Manufacturing Production reports for October. Industrial Production is projected to grow by 0.7% month-over-month after falling by 1.3% in September. Manufacturing Production is expected to increase by 0.7% after declining by 0.7% in September.
Gold Tests Resistance At $1875
Gold continues to move higher despite strong dollar and rising Treasury yields. Currently, gold is trying to settle above the significant resistnace level at $1875. In case gold manages to settle above this level, it will continue its upside move and head towards the next resistance at the $1900 level which will be bullish for gold mining stocks.
It looks that investors and traders stay ready to buy gold at higher levels due to inflation fears. RSI for gold has entered into the overbought territory, but there is enough room to gain additional upside momentum in case the right catalysts emerge. At this point, gold looks ready to move closer to the important $1900 level.
WTI Oil Rebounds After Recent Sell-Off
WTI oil made an attempt to move above $81.50 after the recent unsuccessful attempt to settle below the psychologically important $80 level.
While fears about another wave of coronavirus in Europe have put pressure on oil markets in recent trading sessions, it looks that markets remain worried about tight supply ahead of winter in the Northern Hemisphere.
Natural gas prices are moving higher again in Europe, providing additional support to oil markets. Energy-related stocks did not get out of their trading range despite the recent sell-off, and they will have a good chance to develop upside momentum at the start of today’s trading session.