(Kitco News) - The gold market is holding on to Tuesday's solid gains as U.S. consumer confidence rises more than expected ahead of the holidays.
American consumer confidence index rose to 108.3 in December, up from November's revised reading of 101.4, the U.S. Conference Board reported Wednesday. Economists were expecting to see the index at 101.
Consumer optimism is at its highest level since April, the report said.
The latest economic data is not having much impact on gold prices as the precious metal continues to benefit from a weaker U.S. dollar. February gold futures last traded at $1,828.10 an ounce, up 0.15% on the day.
Although sentiment in the U.S. has improved, Lynn Franco, senior director of Economic Indicators at The Conference Board, said the U.S. economy continues to face some challenges.
"Vacation intentions improved but plans to purchase homes and big-ticket appliances cooled further. This shift in consumers' preference from big-ticket items to services will continue in 2023, as will headwinds from inflation and interest rate hikes," she said.
Looking at the components of the report, The Present Situation Index increased to 147.2 in December, up from November's reading of 138.3. Meanwhile, the Expecations Index rose to 82.4, up from the previous reading of 76.7.
"However, Expectations are still lingering around 80—a level associated with a recession," the report said.
