Gold prices have popped into positive territory following a surprise drop in preliminary sentiment data.
Friday the University of Michigan said its preliminary consumer sentiment survey fell to its lowest point in more than a year, hitting a reading of 89, down from the previous reading of 91.2. The drop was well below consensus expectations, which were forecasting a reading around 92.
Gold was in solidly negative territory ahead of the report and briefly dropped below key support at $1,250 an ounce in initial reaction to positive September retail sales data. However, prices have rebounded with December Comex gold last trading at $1,259.50 an ounce, up 0.14% on the day.
“It is likely that the uncertainty surrounding the presidential election had a negative impact, especially among lower income consumers,” survey director Richard Curtin wrote in a release. “Without that added uncertainty, the confidence measures may not have weakened.”