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(Kitco News) - Gold continues to consolidate above $1,950 an ounce, but selling pressure is starting to build as U.S. consumers appear to be a lot more optimistic than economists expect.
Friday, the University of Michigan said the preliminary reading of its Consumer Sentiment Index jumped to 72.6 up from June's revised reading of 64.4. The data significantly beat expectations, as consensus forecasts called for a reading of around 65.5.
"Overall, sentiment climbed for all demographic groups except for lower-income consumers. The sharp rise in sentiment was largely attributable to the continued slowdown in inflation along with stability in labor markets. As seen in the chart, sentiment is now about halfway between the all-time historic low of 50 from June 2022 and the February 2020 pre-pandemic reading of 101," Joanne Hsu, director of survey of consumers said in the report.
In initial reaction, the data appears to be weighing on gold prices. August gold futures last traded at $1,956.20 an ounce, down 0.39% on the day.
