Gold Pares Gain After U.S. April Consumer Confidence Index Rises To 129.2

New York (April 30)  Gold prices trimmed their earlier gains after a Conference Board Tuesday showed that the index for U.S. consumer confidence rose to 129.2 in April from a revised 124.2 in March.

As of 10:13 a.m. EDT, spot gold was trading up $1.90 to $1,281.30 an ounce. The metal had been at $1,282.80 several minutes before the report.

Consensus expectations from most news organizations called for a reading of around 126.2 to 127.1.

The index or the present situation, which is based on consumers’ assessment of current business and labor-market conditions – increased from 163.0 to 168.3, The Conference Board reported. The expectations index, which reflects consumers’ short-term outlook for income, business and labor market conditions, increased from 98.3 last month to 103 in April.

“Consumer confidence partially rebounded in April, following March’s decline, but still remains below levels seen last fall,” said Lynn Franco, senior director of economic indicators at The Conference Board. “The present situation index, which had decreased sharply last month, improved in April, as did consumers’ short-term outlook.

“Overall, consumers expect the economy to continue growing at a solid pace into the summer months. These strong confidence levels should continue to support consumer spending in the near term.”

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