(Kitco News) - Gold prices are setting fresh session highs after the latest data showed consumer sentiment in the United States improved beyond expectations.
The U.S. Conference Board announced on Tuesday that its Consumer Confidence Index rose to 108.7 in October, up from September’s revised reading of 99.2, which was originally reported at 98.7. The data was significantly better than expected, as economists forecasted a nearly unchanged reading of 98.8.
Gold prices are setting new session highs following the positive consumer sentiment data. Spot gold last traded at $2,764.86 per ounce for a gain of 0.83% on the day.
The key components of the report all showed significant improvement. The Present Situation Index, representing consumers’ assessment of current business and labor market conditions, increased 14.2 points to 138.0, while the Expectations Index, which represents consumers’ short-term outlook for income, business, and labor market conditions, rose 6.3 points to 89.1, well above the threshold of 80 that usually signals an impending recession.
“Consumer confidence recorded the strongest monthly gain since March 2021, but still did not break free of the narrow range that has prevailed over the past two years,” said Dana Peterson, Chief Economist at The Conference Board. “In October’s reading, all five components of the Index improved. Consumers’ assessments of current business conditions turned positive. Views on the current availability of jobs rebounded after several months of weakness, potentially reflecting better labor market data. Compared to last month, consumers were substantially more optimistic about future business conditions and remained positive about future income. Also, for the first time since July 2023, they showed some cautious optimism about future job availability.”
“October’s increase in confidence was broad-based across all age groups and most income groups,” Petersen added. “In terms of age, confidence rose sharpest for consumers aged 35 to 54. On a six-month moving average basis, householders aged under 35 and those earning over $100K remained the most confident.”
