Gold Prices Down More Than 2% Following Strong Rise In UoM Sentiment Survey

London (Nov 11)  Preliminary data showing positive U.S. consumer sentiment has pushed the gold market lower, with prices now down more than 2% on the day.

Friday, the preliminary reading of the University of Michigan Consumer Sentiment Index showed a more optimism than expected, rising to a reading of 91.6, up from last month’s final reading of 87.2. Economists were expecting a reading of 87.4.

Gold prices were under significant pressure ahead of the report as prices fell through key support at $1.250 an ounce. December gold futures last traded at $1.238.20 an ounce, down 2.30% on the day.

Analysts note that the survey was conducted before the results of the U.S. presidential election were known.

Along with the strong rise in sentiment, U.S. consumers are expecting inflation pressures to pick up 2.7% in one year, up from 2.4% seen in the previous month. According to some analysts, rising inflation expectations could add pressure for the Fed to raise interest rates in December.

Source: KitcoNews