Gold Down But Still Positive After Strong Rise In Consumer Confidence

Tuesday December 27, 2016 10:06

(Kitco News) - Gold prices are holding on to modest gains following a strong rise in U.S. consumer confidence.

Tuesday, the U.S. Conference Board, reported that its consumer confidence index rose to a reading of 113.7 in December, up from November’s reading of 107.1. Economists were expecting a reading of 108.90.

Gold was trading in positive territory ahead of the data and are relatively unchanged; February gold last traded at $1,138.90 an ounce, up 0.47% on the day. It’s not surprising gold is relatively unchanged as markets are seeing thin volume during this shortened holiday trading week.

The board noted that the latest reading puts consumer confidence at pre-recession levels.

“A more favorable assessment of current conditions coupled with a more optimistic short-term outlook helped boost confidence. And while the majority of consumers were surveyed before the presidential election, it appears from the small sample of post-election responses that consumers’ optimism was not impacted by the outcome. With the holiday season upon us, a more confident consumer should be welcome news for retailers,” said Lynn Franco, director of economic indicators at The Conference Board.

Consumers were relatively more upbeat regarding the U.S. labor market. According to the survey, the percentage of consumers stating jobs are “plentiful” increased from 25.3% to 26.9%, while those claiming jobs are “hard to get” was unchanged at 21.7%.