Gold Prices Remain Under Pressure Following Rise In U.S. Consumer Confidence
(Kitco News) - The gold market remains under pressure following stronger-than-expected consumer confidence.
Tuesday, the U.S. Conference Board, said that is Consumer Confidence Index increased to a reading of 127.1 in July, up from June’s revised reading of 127.1 and beating expectations. According to consensus forecasts, economists were expecting a reading around 126.5.
The gold market has struggled to find momentum and has been fairly volatile so far this session. December gold futures are seeing little reaction to the data, last trading at $1,229.90 an ounce, down 0.13% on the day.
Despite the headline increase, the report did not show broad-based strength. While consumers remain optimistic in the near-term, cracks in the long-term outlook are starting to appear. The Present Situation Index increased to 165.9, in July, up from June’s reading of 161.7. Meanwhile the Expectations Index dropped to 101.7 this month, down from the previous reading of 104. This is the second month the Expectations Index fell.
“Consumers’ assessment of present-day conditions improved, suggesting that economic growth is still strong,” said Lynn Franco, director of economic indicators at The Conference Board. “However, while expectations continue to reflect optimism in the short-term economic outlook, back-to-back declines suggest consumers do not foresee growth accelerating.”