Gold Holding Steady As U.S. Consumer Confidence Surges To New 18-Year High
(Kitco News) - The gold market continues to hold on to critical support above $1,200 an ounce despite U.S. consumer confidence data holding at their highest level in nearly two decades.
Tuesday, the U.S. Conference Board, said that is Consumer Confidence Index increased to a reading of 138.4 in September, up from August’s revised reading of 134.7 and beating expectations. According to consensus forecasts, economists were expecting a reading around 132.2.
The gold market has been stuck in a range for the last six weeks, seeing little reaction to any major economic data. The yellow metal has been closely following the U.S. dollar, which has also been relatively quiet ahead of tomorrow’s Federal Reserve monetary policy decision.
December gold futures last traded at $1,206.40 an ounce, up 0.17% on the day.
According to the report, the gains in the headline index were the result of surging momentum in the expectations index, which increased to 115.3, up from August's reading of 109.3.
“After a considerable improvement in August, Consumer Confidence increased further in September and hovers at an 18-year high,” said Lynn Franco, director of economic indicators at The Conference Board. “The September reading is not far from the all-time high of 144.7 reached in 2000. These historically high confidence levels should continue to support healthy consumer spending, and should be welcome news for retailers as they begin gearing up for the holiday season.”
Katherine Judge, senior economist at CIBC World Markets, noted that this is the third consecutive month that consumer confidence has risen, which bodes well for further economic growth.
“Overall, consumer spending growth appears to be solid and will be a major contributor to growth in Q3 despite slowing slightly from Q2's pace,” she said.