Gold Prices Hold Near Session Lows Following 17-Year High In U.S. Consumer Confidence

New York (Nov 28)  Gold prices, remain under pressure following data that showed U.S. consumers are more optimistic on the U.S. economy.

Tuesday the Conference Board said that its U.S. Consumer Confidence Index rose in November to a reading of 129.5, a17-year high. Consensus estimates were calling for a reading of 123.90.

Ahead of the report, gold prices were trading near a session low following a positive North American Equity open and remain under pressures in initial reaction to the data. February gold futures last traded at $1.295.70 an ounce, down 0.25% on the day.

The components of the index showed broad-based strength among consumers. The reports said that the Present Situation Index rose to a reading of 153.9, up from October’s reading of 152; at the same time the Expectations Index increased to a reading of 113.3, up from last month’s reading of 109.

“Consumer confidence increased for a fifth consecutive month and remains at a 17-year high said Lynn Franco, Director of Economic Indicators at The Conference Board. “Consumers’ assessment of current conditions improved moderately, while their expectations regarding the short-term outlook improved more so, driven primarily by optimism of further improvements in the labor market. Consumers are entering the holiday season in very high spirits and foresee the economy expanding at a healthy pace into the early months of 2018.”

According to reports, consumer optimism is being mostly boosted by record equity market prices.

Andrew Hunter, U.S. economist at Capital Economics, said that the sentiment report bodes well for further economic growth.

“There are good reasons to expect consumer spending to continue growing at a healthy pace over the coming months, particularly if the Republicans manage to agree on a package of tax cuts by early next year,” he said.

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