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Gold Dip Slightly After U.S. Feb. Consumer Confidence Index Rises

Kitco News

(Kitco News) - Gold prices dipped after a Conference Board report Tuesday showing that the U.S. February consumer confidence index rose to 131.4 from a revised 121.7 in January.

Consensus expectations from most news organizations called for a reading of around 124.7 to 125.

As of 10:09 a.m. EST, spot gold was trading down $3.40 to $1,323.70 an ounce. The metal had been at $1,325.30 a minute ahead of the report.

The index for the consumer’s assessment of the present situation – such as current business and labor market conditions – improved from 170.2 to 173.5. The expectations index – based on consumers’ short-term outlook for income, business and labor market conditions – increased from 89.4 last month to 103.4 this month.

“Consumer confidence rebounded in February, following three months of consecutive declines,” said Lynn Franco, senior director of economic indicators at The Conference Board. “The present situation Index improved, as consumers continue to view both business and labor market conditions favorably.

“Expectations, which had been negatively impacted in recent months by financial market volatility and the government shutdown, recovered in February. Looking ahead, consumers expect the economy to continue expanding. However, according to The Conference Board’s economic forecasts, the pace of expansion is expected to moderate in 2019.”

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