Weak Consumer Sentiment Fails to Save Precious Metals
On Tuesday, gold (NYSEARCA:GLD) futures for December — the most active contract — dropped $10.70 to close at $1,316.30 per ounce, while silver (NYSEARCA:SLV) futures fell 27 cents to finish at $21.59.
Both precious metals closed lower for the third consecutive trading day despite consumer confidence hitting its worst level in four months. The index declined more than expected to 79.7 this month compared to 81.8 in August, according to The Conference Board, an industry group. It is the lowest reading since May and the biggest month-over-month drop since March. Economists were expecting a reading of 79.9.
Lynn Franco, director of economic indicators at The Conference Board, said in the group’s report, “Consumer Confidence decreased in September as concerns about the short-term outlook for both jobs and earnings resurfaced, while expectations for future business conditions were little changed.”