A fall in consumer confidence as recession worries continue to swirl is good news for gold, with the yellow metal climbing as sentiment elsewhere dips.
The latest U.S. Consumer Index reading, released yesterday (Tuesday), shows a fall from September’s reading of 107.8 to a lower than expected 102.5. Analysts had called for 105.9, meaning the drop is much higher than anticipated as consumers feel the pinch of inflation and the potential economic pain of a recession.
Gold gained on the data release, picking up £5.83 ($6.70) in the aftermath of the figures being published, highlighting the resilience of gold in times of uncertainty and economic downturn.
The Conference Board’s Senior Director of Economic Indicators, Lynn Franco said worse could be to come for consumers in the months ahead – something which could give the gold bulls even more fuel. “Looking ahead, inflationary pressures will continue to pose strong headwinds to consumer confidence and spending, which could result in a challenging holiday season for retailers,” she explained.
