Bullish momentum in the gold market is building as prices hold near a critical resistance point, even following better than expected U.S. consumer confidence.
Tuesday, U.S. Conference Board said that its consumer confidence index fell less than expected to 113.8 in January down from the 115.8 reading in December. The data was better than expected as the consensus forecast looked a reading around 111.4.
The gold market has fallen from its recent session highs but remains in striking distance of critical resistance at $1,850 an ounce. Spot gold last traded at $1,845.90 an ounce, up 0.15% on the day.
“Consumer confidence moderated in January, following gains in the final three months of 2021,” said Lynn Franco, senior director of economic indicators at The Conference Board, in the report. “The Present Situation Index improved, suggesting the economy entered the new year on solid footing. However, expectations about short-term growth prospects weakened, pointing to a likely moderation in growth during the first quarter of 2022.