Gold and silver were down in Tuesday morning trading after a report showing that consumer confidence weakened in June, another sign pointing to the precarious nature of the U.S. economy.
The Conference Board’s Consumer Confidence Index dipped in June to 100.4, down from 101.3 in May, as consumers’ concerns about the future persisted. Economists had projected a figure of 100.
But the Board’s Expectations Index – based on consumers’ short-term outlook on income, business and labor market conditions – fell to 73.0 in June, down from 74.9 in May, the report said. An Expectations Index score of 80 or above usually signals a recession.
The Consumer Confidence Survey considers things like consumer attitudes, buying habits, inflation expectations and interest rates to reflect prevailing business conditions and likely developments for the months ahead.
Gold traded down $5.70 at $2,325 per ounce Tuesday morning, while silver also dipped $0.36 at $29.18.
“Confidence pulled back in June but remained within the same narrow range that’s held throughout the past two years, as strength in current labor market views continued to outweigh concerns about the future. However, if material weaknesses in the labor market appear, confidence could weaken as the year progresses,” Dana M. Peterson, Chief Economist at The Conference Board, said in a statement accompanying Tuesday’s report.
Peterson said that the decline in confidence between May and June was centered on consumers aged 35-54. By contrast, those under 35 and those 55 and older saw confidence improve this month.
“Consumers expressed mixed feelings this month: their view of the present situation improved slightly overall, driven by an uptick in sentiment about the current labor market, but their assessment of current business conditions cooled,” Peterson wrote.
