Gold prices push to session highs following disappointing U.S. consumer confidence numbers
(Kitco News) - The gold market is holding at session highs above $1,800 an ounce as U.S. consumer confidence drops more than expected in November.
Tuesday, U.S. Conference Board said that its consumer confidence index fell to 109.5, down from 111.60 reported in October. The data was worse than expected as the consensus forecast looked for confidence to remain relatively unchanged.
The latest economic data is helping to support gold prices. February gold futures last traded at $1,807.80 an ounce, up 1.26% on the day. Along with the disappointing economic data, the precious metal is finding new support as the U.S. dollar drops to a one-week low.
The report noted broad-based weakness in consumer confidence with the Present Situation Index fell to 142.50, down from October’s reading of 145.50. At the same time, the Expectations Index dropped to 87.6, down from the previous reading of 89.0
“Expectations about short-term growth prospects ticked up, but job and income prospects ticked down. Concerns about rising prices—and, to a lesser degree, the Delta variant—were the primary drivers of the slight decline in confidence. Meanwhile, the proportion of consumers planning to purchase homes, automobiles, and major appliances over the next six months decreased, “ said Lynn Franco, senior director of economic indicators at The Conference Board.
Although consumer confident has fallen ahead of the holiday season, economists have sad that consumption is expected to remain strong as consumers remain cashed up because of government assistance during the pandemic.
Franco said that the Conference Board also expects to see consumer spending pick up during the holidays.
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“Confidence levels suggest the economic expansion will continue into early 2022. However, both confidence and spending will likely face headwinds from rising prices and a potential resurgence of COVID-19 in the coming months,” she said.