(Kitco News) - The gold market is holding its ground, consolidating its recent gains as optimism among U.S. consumers continues to fall.
Tuesday, the U.S. Conference Board said its Consumer Confidence Index dropped to 104.7 in March, roughly unchanged from February’s downwardly revised reading of 104.8. The data was weaker than expected, as economists were forecasting an increase of 106.9.
The latest economic data is helping to support gold prices as they trade in rarified air just down from its all-time high of $2,220 an ounce. Spot gold last traded at $2,185.40 an ounce, up 0.68% on the day.
The report said that consumers remain fairly optimistic on the current health of the economy; however, they remain concerned for the future and shows recession fears remain. The report said that the Present Situation Index increased to 151.0 (1985=100) in March, up from 147.6 in February. However, the Expectations Index fell to 73.8, down from 76.3 last month.
“Over the last six months, confidence has been moving sideways with no real trend to the upside or downside either by income or age group,” said Dana M. Peterson, Chief Economist at The Conference Board, in the report.
Peterson added that consumers remain worried due to elevated inflation pressures.
“Consumers remained concerned with elevated price levels, which predominated write-in responses. March’s write-in responses showed an uptick in concerns about food and gas prices, but in general, complaints about gas prices have been trending downward,” Peterson said.
