Gold Prices Unable To Hold Modest Gains After Surge In U.S. Consumer Confidence
Editor's Note: The article was updated reflect a drop in prices.
(Kitco News) - In delayed reaction, the gold market has been unble to on to modest gains, falling from a two-week high as U.S. consumer confidence surges higher.
Tuesday, the U.S. Conference Board, said that is Consumer Confidence Index increased to a reading of 133.4 in August, up from Julyâ€™s revised reading of 127.9 and handily beating expectations. According to consensus forecasts, economists were expecting a reading around 126.6.
The report noted that consumer confidence is at its highest level in nearly 18 years
In intial reaction gold prices managed to hold on to modest gains but has since been hit with new selling pressure. December gold futures last traded at $1,214 an ounce, down 0.15% on the day.
“Consumer confidence increased to its highest level since October 2000 (Index, 135.8), following a modest improvement in July,” said Lynn Franco, Director of Economic Indicators at The Conference Board. “Overall, these historically high confidence levels should continue to support healthy consumer spending in the near-term.”