Gold prices stand firm despite rising US consumer confidence

The Consumer Confidence Index rose to 91.2 points in February, higher than the adjusted 89 points of January, according to a report released on Tuesday by the Conference Board. This result exceeded expectations, as economists previously predicted it would only reach 87.4 points.

Consumer optimism has recovered after falling to a 12-year low last month.

Confidence edged up in February after falling in January, as consumer pessimistic expectations for the future somewhat eased" - Ms. Dana Peterson, Chief Economist of the Conference Board, said - "Four out of five components of the index improved. However, this measure is still significantly lower than the four-year peak reached in November 2024.

The gold market has hardly reacted much to this positive economic data, as it is undergoing technical profit-taking after prices exceeded 5,200 USD/ounce in Monday's session.

However, some analysts believe that new data may create additional selling pressure on gold, reflecting improved consumer sentiment.

Spot gold price recorded at 10:45 PM on February 24 was listed around the threshold of 5,148.8 USD/ounce.

Considering the components of the report, the Current Situation Index - reflecting consumers' assessment of business conditions and the current labor market - decreased by 1.8 points to 120.0. Meanwhile, the Expectations Index - measuring short-term prospects for income, business and employment increased by 4.8 points to 72.0.

Although the general sentiment has improved, the report said that the "addendum" on the economy still leans towards pessimism.

Commentary on prices, inflation and commodity costs remains a top concern. Mentioning trade and politics also increased in February. Mentioning a slight decline in the labor market, while observations related to immigration increased," Ms. Peterson said.