Gold Prices Unable To Hold Modest Gains After Surge In U.S. Consumer Confidence
Editor's Note: The article was updated reflect a drop in prices.
(Kitco News)- In delayed reaction, thegold market has been unble to on to modest gains, falling from a two-week high as U.S.consumer confidence surges higher.
Tuesday,the U.S. Conference Board, said that is Consumer Confidence Index increased toa reading of 133.4 in August, up from July's revised reading of 127.9 and handilybeating expectations. According to consensus forecasts, economists wereexpecting a reading around 126.6.
Thereport noted that consumer confidence is at its highest level in nearly 18years
In intial reaction gold prices managed to hold on to modest gains but has since been hit with new selling pressure. December gold futures last traded at $1,214 an ounce, down 0.15% on the day.
“Consumer confidence increased to its highestlevel since October 2000 (Index, 135.8), following a modest improvement inJuly,” said Lynn Franco, Director of Economic Indicators at The ConferenceBoard. “Overall, these historically high confidence levels shouldcontinue to support healthy consumer spending in the near-term.”
By Neils ChristensenFor Kitco News
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