(Kitco News) -The gold market is not able to attract a safe-haven big with prices hovering near session lows even as consumer optimism continues to fade, raising the risk of slower economic activity.
Tuesday, the U.S. Conference Board said its Consumer Confidence Index dropped to 97 in April, down sharply from March’s revised reading of 103.1. The data was weaker than expected, as economists were forecasting an increase to 104.
This is the third consecutive month sentiment has disappointed.
“Despite these three months of weakness, the gauge continues to move sideways within a relatively narrow range that’s largely held steady for more than two years,” the report said.
The gold market continues to see technical selling pressure as traders continue to focus on rising expectations that the Federal Reserve will maintain its restrictive monetary policy through the summer.
June gold futures last traded at $2,319.70 an ounce, down 1.62% on the day. According to some analysts, gold prices are close to testing an important support level. Some analysts have said that gold needs to hold above $2,300 as it closes out the month. A drop below would signal more weakness to come.
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