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Gold Remains Soft After U.S. Oct. Consumer Confidence Index Rises To 137.9

Kitco News

Editor's Note: Updating earlier story with more details from report.

(Kitco News) - Gold prices remained on the defensive after a Conference Board report Tuesday showing that its October index for U.S. consumer confidence rose to 137.9 from a revised September reading of 135.3.

Consensus expectations from most news organizations called for a reading of around 136.3 to 136.4. The September reading had originally been listed at 138.4 before Tuesday’s revision.

The index for the present situation, which is based on consumers’ assessment of current business and labor-market conditions, improved to 172.8 from 169.4. The expectations index, which is based on consumers’ short-term outlook for income, business and labor-market conditions, rose to 114.6 from 112.5 last month.

“Consumer confidence increased in October, following a modest gain in September, and remains at levels last seen in the fall of 2000…,” said Lynn Franco, senior director of economic indicators at The Conference Board.

“Consumers’ assessment of present-day conditions remains quite positive, primarily due to strong employment growth. The expectations index posted another gain in October, suggesting that consumers do not foresee the economy losing steam anytime soon. Rather, they expect the strong pace of growth to carry over into early 2019.”

As of 10:09 a.m. EDT, spot gold was $4 lower to $1,224.60 an ounce. Two minutes prior to the report, gold had been at $1,224.90 an ounce.

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