Gold Remains Down As U.S. Consumer Confidence Falls In November
(Kitco News) - The gold market is not seeing renewed safe-haven demand as U.S. consumer confidence comes in weaker than expected just as the busy holiday shopping season kicks off.
Tuesday, the U.S. Conference Board, said that is Consumer Confidence Index increased to a reading of 135.7 in November, down from October’s reading of 137.9 and missing expectations. According to consensus forecasts, economists were expecting a reading around 136.2.
The gold market has struggled to maintain its momentum even as sentiment in financial markets start to turn as equities remain in correction territory. The yellow metal is seeing little reaction to the weaker-than-expected data. December gold futures last traded at $1,220.80 an ounce, down 0.13% on the day.
While consumers remain positive on the current state of the economy, the data shows that they are becoming concerned about future growth. The report said that the Expectations Index, dropped to a reading of 111, compared to October’s reading of 115.1.
“Overall, consumers are still quite confident that economic growth will continue at a solid pace into early 2019. However, if expectations soften further in the coming months, the pace of growth is likely to begin moderating,” said Lynn Franco, senior director of economic indicators at The Conference Board.