Gold Steady Despite Jump in US Consumer Confidence

The gold market is shaking off a massive rise in U.S. consumer confidence as prices hold near their one-month highs.

Tuesday, the U.S. Conference Board, reported that its consumer confidence index jumped to a reading of 125.6 in March, up from February’s reading of 116.1. Economists were expecting to see a small dip in consumer sentiment, with consensus forecasts calling for a reading around 113.9.

The report said that this is the highest reading in consumer confidence in 17 years.

Gold prices have been steadily pushing higher for nearly two weeks, hitting a one-month high Monday. The market has managed to hold on to most of its gains with little reaction seen following the consumer confidence numbers; April Comex gold futures last traded at $1,257 an ounce.

“Consumers feel current economic conditions have improved over the recent period, and their renewed optimism suggests the possibility of some upside to the prospects for economic growth in the coming months,” said Lynn Franco, Director of Economic Indicators at The Conference Board. 

The report noted broad-based gains in the components of the index. The present situation index rose to 143.1, compared to February’s reading 134.4; at the same time the expectations index rose to 113.8, compared to the precious reading of 103.9.

The report noted continued improvement in consumers’ outlook on the labor market. Of the survey participants, 31.7% said that jobs were “plentiful”, up from 26.9% in last monthr; at the same time those claiming that jobs were “hard to get” fell to 19.5%, from 19.9% in February.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza