Consumer Confidence Falls, Gold Prices Rebound

Gold prices rebounded slightly on Tuesday after the release of the Consumer Confidence Index for July, which showed a worse-than-expected reading. The index fell to 90.8, below the consensus forecast of 92.3 and last month's revised print of 92.2. According to Dana Peterson, Chief Economist at The Conference Board, 'Consumer confidence moderated slightly in July, continuing a general downward sloping trajectory since late 2021.'

The Present Situation Index, which measures consumers' assessment of current business and labor market conditions, declined by 3.6 points to 114.9, its third consecutive monthly decline. The Expectations Index, based on consumers' short-term outlook for income, business, and labor market conditions, remained unchanged at 74.7. Consumers' write-in responses on the economy were mostly pessimistic, with references to prices and oil and gas easing in frequency but remaining elevated.

Gold prices initially fell after the data release, but later rebounded to $4,029.86 per ounce, a loss of 1.14% on the daily chart. The survey period for the Consumer Confidence Index was July 1-22, encompassing ongoing conflict in the Middle East. Consumers' average and median 12-month inflation expectations were less elevated in July compared to the previous month.