Gold price down following rise in U.S. Consumer Confidence
(Kitco News) - Gold prices continue to struggle to find new bullish momentum, falling further below $1,800 an ounce as optimism among U.S. consumers rises higher than expected in October.
Tuesday, the U.S. Conference Board said that its Consumer Confidence Index rose to 113.8, down from September's reading of 109.8. The data beat expectations as economists were expecting a reading around 108.4.
The gold market was under pressure ahead of the latest sentiment data and has seen little reaction to the latest economic data. December gold futures last traded at $1,789.90 an ounce, down nearly 1% on the day.
According to the report, consumer sentiment approved across the board. The Present Situation Index increased to 147.3, up from the previous reading at 144.3. At the same time the Expectations Index rose to 91.3, up from 89.7 in September.
"Consumer confidence improved in October, reversing a three-month downward trend as concerns about the spread of the Delta variant eased," said Lynn Franco, senior director of economic indicators at The Conference Board. "While short-term inflation concerns rose to a 13-year high, the impact on confidence was muted. The proportion of consumers planning to purchase homes, automobiles, and major appliances all increased in October—a sign that consumer spending will continue to support economic growth through the final months of 2021.