(Kitco News) - The gold market remains under pressure but continues to hold new elevated support levels above $5,100 an ounce, even in the face of an improvement in U.S. consumer confidence.
The Consumer Confidence Index rose to 91.2 in February, up from January’s revised reading of 89, the Conference Board said Tuesday. The data were stronger than expected, as economists had been looking for a reading of 87.4.
Consumer optimism rebounded from last month’s 12-year low.
“Confidence ticked up in February after falling in January, as consumers’ pessimistic expectations for the future eased somewhat,” said Dana Peterson, Chief Economist at The Conference Board. “Four of five components of the Index firmed. Nonetheless, the measure remained well below the four-year peak achieved in November 2024.”
The gold market is not seeing much reaction to the solid economic data, as it is experiencing some technical profit-taking after Monday’s drive through $5,200 an ounce. However, some analysts have said that the data could provide renewed selling pressure on gold as it highlights improved optimism among consumers.
Spot gold last traded at $5,134.90 an ounce, down more than 1% on the day.
Looking at the components of the report, the Present Situation Index—based on consumers’ assessment of current business and labor market conditions—fell by 1.8 points to 120.0. At the same time, the Expectations Index—based on consumers’ short-term outlook for income, business, and labor market conditions—increased by 4.8 points to 72.0.
Although sentiment improved, the report noted that “write-in” responses regarding the economy continued to skew toward pessimism.
“Comments about prices, inflation, and the cost of goods remained at the top of consumers’ minds. Mentions of trade and politics also increased in February. Labor market mentions eased a bit in February, while observations about immigration increased somewhat,” said Peterson.
