Gold Elevates High As US Consumer Confidence Plunges

Eye on Equities  |  2014-02-26 02:38:25   |   By

Rising to a 16-week high, gold prices was found to mount high which reflected the weak consumer confidence data.

NEW YORK (Scrap Monster) : Rising to a 16-week high, gold prices was found to mount high which reflected the weak consumer confidence data. As the US buyer confidence saw a decline, it triggered doubt on the recovery of consumer market for gold. As per the consumer confidence index released by the Consumer Board, the consumer confidence showed a drop to 78.1 in Feb. which was standing at 79.4 in Jan. The numbers in the manufacturing and employment sector witnessed a decline owing to the worries of slowdown of US economic recovery.

April delivery Gold witnessed a positive sign of recovery, increasing by 0.4 % to reach near to $ 1,342.70 per troy ounce on the Comex division of the New York Mercantile Exchange. This was the highest increase recorded since Oct. 30 last year. Followed by the rise, 2014 saw a 11 % zooming of gold price. This indicates the surge of investors buying gold and silver owing to US economic worries. The speculation that Ukrain may suffer a sovereign debt followed by the expulsion of President of the country also seems to have affected the economy. The same economic and political concerns have lead investors in purchasing precious metals as hedge currently in the hope of holding value in future.

According to Peter Hug at Kitco Metals, the US economic data concerns have fueled the notion of Fed’s further tapering of economic stimulus and may also lead to hiking of interest rates.  With the increase in S & P 500, investors are found to use gold against hedge. Gold in London market settled at $ 1339 from previous $ 1334.75, while March silver stood at $ 21.963, down by $ 0.88.