Consumer confidence index rebounds more than expected, spot gold approaches US$4,000 mark
On Friday, boosted by unexpected improvements in U.S. consumer confidence data and easing inflation expectations, spot gold prices climbed to an intraday high, once approaching $4,000 an ounce. The preliminary value of the July consumer confidence index released by the University of Michigan jumped to 54.4 from 49.5 in June, much higher than the 51.3 expected by economists. The index further moved away from the historical low set in May and returned to its highest level since February this year. The survey leader pointed out that the improvement in confidence covers a wide range of groups of different ages, incomes, wealth and political affiliations. At the same time, the report showed that consumers' one-year inflation expectations have eased, and this data is closely watched by the market. Gold prices found support against this backdrop, having fallen below the key psychological $4,000 level in the previous session due to a stronger U.S. dollar and rising Treasury yields. Although gold prices rebounded on the day, they are still likely to post significant losses this week. Market analysis points out that inflation concerns caused by rising energy prices are the main factor restricting gold's performance. If the recent decline in gasoline prices reverses, the rebound in consumer confidence may not be sustainable. Open a futures account on Sina's cooperative platform, safe, fast and guaranteed