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(Kitco News) - Gold prices continue to struggle, testing support near $1,950 an ounce as U.S. consumer optimism continues to push higher.
The Conference Board said on Tuesday its consumer confidence index rose to 117 this month, up from June's revised reading of 110.1. The data significantly beat expectations, as economists were looking for a reading of around 112.
The report said consumer optimism is at its highest level since July 2021.
"Headline confidence appears to have broken out of the sideways trend that prevailed for much of the last year. Greater confidence was evident across all age groups, and among both consumers earning incomes less than $50,000 and those making more than $100,000," said Dana Peterson, chief economist at The Conference Board, in the report.
The gold market is holding the line following the stronger-than-expected economic data; however, prices are trading near session lows. August gold futures last traded at $1,958.20 an ounce, down 0.20% on the day.
The report noted broad-based improvement in consumer confidence. The Present Situation Index rose to 160, up from June's reading of 155.3; at the same time, the Expectations Index rose to 88.30, up from 80 in June.
The report noted that the Expectations Index has pushed above an important level. Readings below 80 have preceded recessions.
"Despite rising interest rates, consumers are more upbeat, likely reflecting lower inflation and a tight labor market. Although consumers are less convinced of a recession ahead, we still anticipate one likely before yearend," the report said.
