(Kitco News) - The gold market continues to face modest selling pressure even as consumer confidence in the U.S. falls to its lowest level since the start of the year.
The Consumer Confidence Index fell to 89.4 in August, down from July’s 90.8. The data was also below the economists’ consensus forecast of 90.3.
According to the report, consumer pessimism was driven by future expectations. The Present Situation Index—based on consumers' assessment of current business and labor market conditions—rose by 6.8 points to 121.2, ending three consecutive monthly declines, the report said. The Expectations Index—based on consumers' short-term outlook for income, business, and labor market conditions—dropped by 5.8 points to 68.2.
“Consumer confidence moderated slightly in August for a second consecutive month,” said Dana M. Peterson, Chief Economist at The Conference Board. “The Expectations Index slipped further into negative territory, which was offset by a moderate rise in the Present Situation Index after declining in the past three months. Consumer appraisals of current business conditions were mildly positive. Perceptions of the current labor market improved, reversing three months of moderate decline. Looking ahead, consumers were more pessimistic about business conditions and the labor market over the next six months. Expectations for household incomes moderated but remained optimistic overall.”
The gold market is not seeing much reaction to the disappointing sentiment data. Spot gold last traded at $4,622.70 an ounce, down 0.62% on the day.
