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(Kitco News) - Gold prices have fallen to session lows as optimism among U.S. consumers surges higher in June.
The Conference Board said on Tuesday its consumer confidence index rose to 109.7 this month, up from May’s reading at 102.5. The data significantly beat expectations as economists were looking for a reading of around 103.9.
The report said that optimism is at its highest level in 1.5 years, even as recession fears remain.
The gold market is seeing some solid selling pressure, falling to session lows in initial reaction to the better-than-expected data. August gold futures last traded at $1,925 an ounce, down 0.46% on the day.
The report shows sentiment approved across the board. The Present Situations Index rose to 155.3, up from 148.9 reported in May. At the same time the Expectations Index rose to 79.3, up from the previous level of 71.5.
“Although the Expectations Index remained a hair below the threshold signaling recession ahead, a new measure found considerably fewer consumers now expect a recession in the next 12 months compared to May,” said Dana Peterson, chief economist at The Conference Board.
Peterson noted that consumer sentiment has pushed to its highest level since January 2022.
““Greater confidence was most evident among consumers under age 35, and consumers earning incomes over $35,000. Nonetheless, the expectations gauge continued to signal consumers anticipating a recession at some point over the next 6 to 12 months,” she said.
