Gold Holding Steady As U.S. Consumer Confidence Surges To New 18-Year High
(Kitco News)- Thegold market continues to hold on to critical support above $1,200 an ouncedespite U.S. consumer confidence data holding at their highest level in nearlytwo decades.
Tuesday,the U.S. Conference Board, said that is Consumer Confidence Index increased toa reading of 138.4 in September, up from August's revised reading of 134.7 and beatingexpectations. According to consensus forecasts, economists were expecting areading around 132.2.
Thegold market has been stuck in a range for the last six weeks, seeing little reactionto any major economic data. The yellow metal has been closely following theU.S. dollar, which has also been relatively quiet ahead of tomorrow's FederalReserve monetary policy decision.
Decembergold futures last traded at $1,206.40 an ounce, up 0.17% on the day.
According to the report, the gains in the headline index were the result of surging momentum in the expectations index, which increased to 115.3, up from August's reading of 109.3.
“After a considerable improvement in August, Consumer Confidence increased further in September and hovers at an 18-year high,” said Lynn Franco, director of economic indicators at The Conference Board. “The September reading is not far from the all-time high of 144.7 reached in 2000. These historically high confidence levels should continue to support healthy consumer spending, and should be welcome news for retailers as they begin gearing up for the holiday season.”
KatherineJudge, senior economist at CIBC World Markets, noted that this is the thirdconsecutive month that consumer confidence has risen, which bodes well forfurther economic growth.
“Overall,consumer spending growth appears to be solid and will be a major contributor togrowth in Q3 despite slowing slightly from Q2's pace,” she said.
By Neils ChristensenFor Kitco News
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