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Gold Briefly Pushes Into Positive Territory After Drop In UoM Consumer Sentiment

(Kitco News) - Gold prices have popped into positive territory following a surprise drop in preliminary sentiment data.

Friday the University of Michigan said its preliminary consumer sentiment survey fell to its lowest point in more than a year, hitting a reading of 89, down from the previous reading of 91.2. The drop was well below consensus expectations, which were forecasting a reading around 92.

Gold was in solidly negative territory ahead of the report and briefly dropped below key support at $1,250 an ounce in initial reaction to positive September retail sales data. However, prices have rebounded with December Comex gold last trading at $1,259.50 an ounce, up 0.14% on the day.

“It is likely that the uncertainty surrounding the presidential election had a negative impact, especially among lower income consumers,” survey director Richard Curtin wrote in a release. “Without that added uncertainty, the confidence measures may not have weakened.”

 

By Neils Christensen of Kitco News; nchristensen@kitco.com

 

 

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