Gold Higher After Drop in US Consumer Sentiment

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.”

via Kitco

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.