Last night China reported 7.5% GDP, 8.9% Industrial production

Last night China reported 7.5% GDP, 8.9% Industrial production, 13.3% Retail Sales, and 20.1% Fixed Asset Investment increases year over year. The data paints the picture that the Chinese government wants the world to see; steady fixed asset investment, expected GDP, slightly lower industrial production due to slower global economy, and increased retail sales as China transitions into a more consumer driven economy. We should take these data with a grain of salt and assume the Chinese economy is weaker than expected as the construction surge cools. US retail sales for June were lower than expected at 0.4%(advance retail), 0%(retail sales less auto), -0.1%(less auto and gas), and 0.1%(control group). May retail sales number was also revised down 0.1% to 0.5%. The data paints a picture of the “cautious” US consumer as potentially slowing housing market and stubbornly high unemployment rate are still on the minds of Americans. The tug of war will continue as debates on QE and the timing of the tapering will intensify with every major data point. Gold will continue to try to test $1300 and silver is hovering around $20. The PGMs are gaining a little momentum as platinum hold above $1400 and palladium above $700 on bets that Q3 and Q4 will point to stronger economic recovery. We would lighten up on positions as we enter the summer slowdown and expect less trading volatility. Have a wonderful day.