Gold rallies for 4th session on poor retail sales report

Gold futures on the COMEX division of the New York Mercantile Exchange rose for a fourth session in a row Wednesday as a poor retail sales report drove down U.S. stocks and the U.S. dollar.

The most active gold contract for February delivery rose 0.1 dollars, or 0.01 percent, to settle at 1,234.50 dollars per ounce.

A report from the U.S. Department of Commerce showed much weaker-than-expected U.S. retail sales in December, putting more pressure on U.S equities and the dollar, while supporting the demand for safe haven.

Retail sales in December dropped 0.9 percent after a 0.4 percent gain in November and a 0.3 percent increase in October. Analysts say this is the largest negative report since January 2014. The decline was led by miscellaneous retail stores falling 1. 9 percent, and further compounded by motor vehicles, dropping 0.7 percent in December.

U.S. stocks are off to a sharply lower start Wednesday following an unexpected decline in December retail sales and after the World Bank reduced its 2015 GDP growth target. Equity and gold typically move in opposite directions.

Silver for March delivery lost 16.8 cents, or 0.98 percent, to close at 16.988 dollars per ounce. Platinum for April delivery fell 8.8 dollars, or 0.71 percent, to close at 1,239.00 dollars per ounce.