The US Consumer Sentiment index was released tonight, showing an actual figure of 73.2, which is lower than the forecast of 75. This suggests a slight decrease in consumer confidence regarding the economic conditions in the United States. Such data is often viewed as a critical indicator for assessing economic health, given that household consumption is a major component of the US GDP.
The lower-than-expected figure contributed to a decline in Gold prices to $2,682. This drop can likely be attributed to the strengthening of the US dollar, which continues to dominate the markets after the Non-Farm Payroll data significantly exceeded expectations, thus diminishing Gold’s appeal as a safe-haven asset.
On the flip side, some market participants may believe that the moderate level of consumer sentiment data is insufficient to prompt the Federal Reserve to alter its monetary policies in the near term.
In addition to Gold, major currency pairs also fell in response to the US Consumer Sentiment data, with GBPUSD declining to 1.2222 and EURUSD reaching a monthly low of 1.0236.
