Gold Stable Despite Strong US Data

Gold prices are relatively unchanged following strong than expected U.S. consumer optimism and new home sales.

Tuesday, the U.S. Conference Board said that its Consumer Sentiment index fell to a reading of 97.3 in July, following June’s reading of 98.0.

However, economists were expecting to see a a bigger decline in consumer confidence with consensus forecasts calling for a reading of 95.6.

 “Consumers were slightly more positive about current business and labor market conditions, suggesting the economy will continue to expand at a moderate pace. Expectations regarding business and labor market conditions, as well as personal income prospects, declined slightly as consumers remain cautiously optimistic about growth in the near-term,” said Lynn Franco, director of economic indicators at The Conference Board.

August gold prices last traded at $1,320.80 an ounce, relative unchanged on the day and since the release of the report.

At the same time, U.S. Commerce Department said that sales of new single-family homes rose by 3.5% in June to a seasonally adjusted annualized rate of 592,000 homes, up from May’s revised sales rate of 572,000 units. According to consensus forecasts, economists were expecting to see a modest rise to 560,000 units.

via SOURCE

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