(Kitco News) - The gold market continues to struggle and has been unable to attract any safe-haven interest, even as consumer confidence declines further.
The Consumer Confidence Index fell to 93.0 in June, down from May’s revised reading of 98.4, the Conference Board reported on Tuesday.
The data came in weaker than expected, as economists had anticipated a modest increase to 99.4.
Breaking down the report, the Present Situation Index declined to 129.1, while the Expectations Index fell to 69.0—a drop of 4.6 points from May’s level. The report noted that recession fears remain elevated, as the Expectations Index continues to sit well below the traditional 80-point threshold.
“Consumer confidence weakened in June, erasing almost half of May’s sharp gains,” said Stephanie Guichard, Senior Economist of Global Indicators at The Conference Board. “The decline was broad-based across components, with consumers’ assessments of both the present situation and future expectations contributing to the deterioration.”
Despite the disappointing economic data, gold prices remain under pressure, testing critical near-term support at $3,300 an ounce. Spot gold was last trading at $3,305.34 an ounce, down nearly 2% on the day.
According to the report, President Donald Trump’s tariff policies remain the biggest concern among consumers. At the same time, inflation fears also remain top of mind among consumers; however, inflation pressures have dropped from May’s highs.
The report said that 12-month inflation expectations dropped to 6%, down from May’s expectation for consumer prices to rise 6.4% by next year.
The report also said that consumers’ perceived likelihood of a recession over the next 12 months remained elevated.
