The latest U.S. Consumer Confidence Index data missed analyst expectations by some margin, giving the gold bulls a clear surge of momentum. A reading of 108.50 had been forecast but growing consumer caution ahead of an expected recession saw confidence levels fall to a low of 102.9.
The accompanying analysis from Conference Board economic analysts also painted a fairly pessimistic picture noting, “While 12-month inflation expectations improved—falling to 6.3 percent from 6.7 percent last month—consumers may be showing early signs of pulling back spending in the face of high prices and rising interest rates. Fewer consumers are planning to purchase homes or autos and they also appear to be scaling back plans to buy major appliances. Vacation intentions also declined in February.”
New Expectations Index data was also released yesterday (Tuesday). It too points to a likely recession within a year, with a reading below the 80 point marker, heaping additional support on gold prices. The yellow metal was quick to react to these latest reports, with prices ticking upwards through the day.
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