Gold prices continue to trade near session lows as U.S. consumers still feel optimistic over the state of the economy.
Tuesday, the U.S. Conference Board said its Consumer Confidence Index rose a reading of 104.1 in September, up from August’s revised level of 101.8. Economists were expecting to see a drop with consensus forecasts calling for a reading of 98.6.
According to reports this is the highest reading in consumer confidence since August 2007.
“Consumers’ assessment of present-day conditions improved, primarily the result of a more positive view of the labor market. Looking ahead, consumers are more upbeat about the short-term employment outlook, but somewhat neutral about business conditions and income prospects,” said Lynn Franco, director of economic indicators at The Conference Board. “Overall, consumers continue to rate current conditions favorably and foresee moderate economic expansion in the months ahead.”
Gold prices were selling off ahead of the report and the weakness has continued. December Comex gold futures last traded at $1,330.30 an ounce, down more than 1% on the day.
Gold prices are trading just off session lows following a surge in Consumer Confidence. Gold prices last traded at $1,331.20 an ounce, down almost 1% on the day.