The U.S. Commerce Department released the producer price index figures on Friday. The U.S. producer price index declined 0.4% in October, missing expectations for a 0.2% rise, after a 0.5% drop in September.
On a yearly basis, the producer price index decreased 1.6% in October, missing forecasts of a 1.2% decline, after a 1.1% fall in September. It was the largest decline since 2009.
A stronger U.S. dollar and weak global demand weigh on inflation.
Services prices were down 0.3% in October, while prices for goods declined 0.4%.
Food prices decreased by 0.8% in October, while energy prices were flat.
The producer price index excluding food and energy fell 0.3% in October, missing expectations for a 0.1% gain, after a 0.3% decrease in September.
On a yearly basis, the producer price index excluding food and energy climbed 0.1% in October, missing forecasts of a 0.5% increase, after a 0.8% rise in September.
These figures could mean that the Fed will not start raising its interest rate in December.
The U.S. Commerce Department released the retail sales data on Friday. The U.S. retail sales climbed 0.1% in October, missing expectations for a 0.3% increase, after a flat reading in September. September's figure was revised down from a 0.1% rise.
The lower increase was mainly driven by a fall in automobiles purchases. Sales at auto dealerships declined 0.5% in October.
Retail sales excluding automobiles increased 0.2% in October, missing forecasts of a 0.4% gain, after a 0.3% fall in September. September's figure was revised up from a 0.4% decrease.
Sales at building material and garden equipment stores climbed 0.9% in October, while sales at furniture stores increased 0.4%.
Sales at clothing retailers were flat in October, while sales at service stations dropped 0.9%.
These figures could mean that the Fed will not start raising its interest rate in December.
The International Energy Agency (IEA) released its monthly report on Wednesday. The agency upgraded its oil demand forecasts. The IEA expects the global oil demand in 2016 to decline to 1.2 million barrels a day.
"Momentum will ease towards its long-term trend as recent props - sharply lower oil prices, colder-than-year-earlier winter weather and post-recessionary bounces in some countries - are likely to give way," the IEA said.
The agency also said that global oil supply exceeds 97million barrels a day in October, driven by higher non-OPEC output.
OPEC crude supply was 31.76 million barrels a day in October. Higher oil output in Libya, Saudi Arabia and Nigeria offset lower oil output in Iraq and Kuwait.
Non-OPEC oil supply growth is expected to fall by more than 600,000 barrels a day in 2016, while OPEC oil supply is expected to increase to 31.3 million barrels a day in 2016, up 0.2 million barrels a day from last month.
West Texas Intermediate futures for December delivery declined to $41.56 (-0.46%), while Brent crude rebounded to $45.21 (+2.61%) after a sharp fall yesterday. Both types of crude are near two-month lows amid speculation that the global supply glut will persist. On Thursday official data from the Energy Information Administration showed that U.S. crude stockpiles rose by 4.2 million barrels in the week ending November 6, while economists had expected a more modest increase of 1.7 million barrels.
A speculation that OPEC won't announce production cuts at next month's meeting added to oversupply concerns.
Gold is currently at $1,081.90 (+0.08%) near a three-month low amid an imminent Fed's rate hike. Investors will focus on U.S. economic data to assess strength of the economy, which would determine the timing a liftoff in rates. Higher rates would harm demand for the non-interest-paying precious metal.
Physical demand advanced amid Diwali festival in India, world's biggest consumer of gold.
Assets of SPDR Gold Trust, the biggest gold exchange-traded fund in the world, fell to 661.94 tonnes on Thursday, the lowest since September 2008.
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