Gold price off its lows but still under pressure as U.S. consumer confidence rises to 107.2
NEW YORK (Mar 29) The gold market continues to see strong selling pressure, with prices trading around $1,900, as improving U.S. consumer sentiment appears to have little impact on the precious metal.
American consumer confidence index rose to 107.2, up from February’s initial reading of 110.5, the U.S. Conference Board reported Wednesday. Economists were expecting to see the index at a reading of around 106.9.
The relatively in-line economic data is having little impact on gold as shifting investor sentiment weighs on the precious metal. April gold futures last traded at $1,909.60 an ounce, down 1.5% on the day.
The relatively in-line economic data is having little impact on gold as shifting investor sentiment weighs on the precious metal. April gold futures last traded at $1,909.60 an ounce, down 1.5% on the day.
Looking past the headline number, the report noted mixed sentiment among consumers. The Present Situation Index rose to 153, up from February’s reading of 143.0. Meanwhile, the Expectations Index dropped to 76.6, down from the previous reading of 80.8.
“consumer confidence continues to be supported by strong employment growth and thus has been holding up remarkably well despite geopolitical uncertainties and expectations for inflation over the next 12 months reaching 7.9 percent—an all-time high,” said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. “However, these headwinds are expected to persist in the short term and may potentially dampen confidence as well as cool spending further in the months ahead.”
The report also noted that rising interest rates could be taking its toll on consumption as consumer look to hold back on buying big-ticket items like cars.
KITCO
