Gold Remains Down Despite Fall In Consumer Confidence
(Kitco News) - The gold market remains under pressure but off its lowest, following a larger-than-expected drop in U.S. consumer confidence
Tuesday, the U.S. Conference Board, reported that its consumer confidence index fell to a reading of 117.9 in May, down from April’s revised reading of 119.4. Economists were expecting to see relatively unchanged consumer sentiment, with consensus forecasts calling for a reading around 113.9.
The Gold market has been attracting some modest technical profit taking after hitting a one-month high overnight. While the yellow metal is off its lows, initial reaction still shows some weakness in the marketplace; August Comex gold futures last traded at $1,266 an ounce, down 0.42% on the day.
“Consumer confidence decreased slightly in May, following a moderate decline in April,” said Lynn Franco, director of economic indicators at The Conference Board. “However, consumers’ assessment of present-day conditions held steady, suggesting little change in overall economic conditions. Looking ahead, consumers were somewhat less upbeat than in April, but overall remain optimistic that the economy will continue expanding into the summer months.”
Despite the drop in the headline index, the report noted continued optimism in the U.S. labor market; According to the survey results, consumers who said jobs are “plentiful” declined marginally from 30.3 percent to 29.9 percent; at the same time those claiming jobs are “hard to get” decreased from 19.4 percent to 18.2 percent.