In a surprisingly downbeat report, U.S. retail sales for December were down 1.2%from November, which was weaker than the expected rise of 0.1%.The reading was the steepest monthly decline in 10 years. Meantime, the U.S.producer price index report for January showed a fall of 0.1%. A rise of 0.1%was expected. This continues a string of non-problematic inflation data comingfrom the major world economies. And weekly joblessclaims rose by 4,000. All of today’s U.S. data played into the handsof the U.S. monetary policy doves, who want to see the Fed hold off on raisinginterest rates, and maybe even lower them a bit in 2019. The data wassupportive for the precious metals markets and did knock the U.S. dollar offits daily highs.

Still, trader and investor riskappetite in the marketplace this week remains generally upbeat. U.S. stockindexes were holding slight gains at midday and were near this week’s 2.5-monthhighs. That’s bearish for the safe-haven metals.

The U.S.-China high-level trade talkstaking place in Beijing remain on the front burner.U.S. Treasury Secretary Mnuchin and U.S. Trade Representative Lighthizer arescheduled to participate in the discussions today and Friday. China PresidentXi Jinping may meet with the U.S. delegation on Friday, as a show of good will.President Trump on Wednesday said the talks are going “very well.” The rally inworld stock markets just recently is due in part to optimism the U.S. and Chinawill reach at least a limited deal by the March 1 deadline imposed by the U.S.

The marketplace has also been assuagedthis week by the high likelihood that Trump will sign a U.S. budgetcompromise between the Democrats and Republicans, despite the agreement nothaving as much money appropriated for a border wall with Mexico.