Gold prices continued to rise sharply this morning as US consumer optimism finally hit a wall in August.
The Conference Board announced on Tuesday that the consumer confidence index fell sharply to 106.1 in August, down from July’s downwardly revised reading of 114. The numbers came in well below expectations as economists were only slightly optimistic. decrease to 116.
“Consumer confidence fell in August 2023, negating consecutive increases in June and July,” said Dana Peterson, chief economist at The Conference Board. “August’s disappointing aggregate number reflected declines in both current conditions and expectations indices. The responses submitted showed that consumers were once again concerned about rising prices in general and for groceries and petrol in particular.”
Peterson noted that the decline in consumer confidence was evident across all age groups, and was most notable among consumers with household incomes of $100,000 or more, as well as consumers earning less than $50,000. “Confidence remained relatively stable for consumers with incomes between $50,000 and $99,999,” said Peterson.
The gold market is recovering after weaker-than-expected economic data. Spot gold last traded at $1,933.31 an ounce, up 0.69% on the day.
The report showed a broad drop in consumer confidence. The Present Situation Index fell to 144.8 in August from 153 in July, while the Expectations Index fell to 80.2 from 88 in July.
The Expectations Index did manage to stay above the important level of 80. Numbers below 80 have preceded recessions.
“While consumer fears of an impending recession have further subsided, we still expect it to be likely before the end of the year,” the report said.