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Gold prices holding solid gains as U.S. consumer confidence falls to 100.2 in Nov

November 29, 2022

NEW YORK (Nov 29) The gold market is holding solid gains as U.S. consumer confidence falls in line with market expectations.

American consumer confidence index fell to 100.2 in November, down from October’s reading of 102.5, the U.S. Conference Board reported Tuesday. Economists were expecting to see the index at 100.

The report noted broad-based weakness in U.S. consumer sentiment. The Present situation index fell to a reading of 137.4m down from October’s reading of 138.9. At the same time, the Expectations Index fell to 75.4, down from the previous reading at 78.1.

Not only do U.S. consumers see weaker economic growth in the U.S. but they also expect inflation to remain persistently high. The report said that one-year inflation expectations rose to 7.2%, up from the previous reading at 6.9%.

The gold market is not seeing much reaction to the latest economic data. February gold futures last traded at $1,765.40 an ounce, up 0.58% on the day.

Adam Button, chief market strategist at noted that the Expectations Index has pushed deeper into historical recessionary territory. He added that these expectations will continue to put pressure on the Federal Reserve’s monetary policy.

“Everything is pointing to a slowdown in activity/inflation but how hard do they continue to press on the brakes until it actually materializes? The problem is that if they press too hard for too long, they'll manufacture an unnecessary recession,” he said.


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