The economy has been on a rollercoaster ride for much of the last 18 months, with stocks, inflation, stagflation, bond yields, property data, unemployment and consumer confidence all key talking points that have see-sawed dramatically as the pandemic has played out.
This week, consumers are back to feeling more positive, with an uptick in consumer sentiment confirmed by the latest Consumer Confidence Index. Released by the U.S. Conference Board yesterday (Tuesday), the new data shows that shoppers are feeling more confident heading into the critical holiday shopping period after a three-month spell in the doldrums.
The senior director of economic indicators at the Conference Board, Lynn Franco said, “Consumer confidence improved in October, reversing a three-month downward trend as concerns about the spread of the Delta variant eased. While short-term inflation concerns rose to a 13-year high, the impact on confidence was muted. The proportion of consumers planning to purchase homes, automobiles, and major appliances all increased in October—a sign that consumer spending will continue to support economic growth through the final months of 2021.”
While analysts remain aware of the threat of inflation lurking in the background, this temporary uplift is good news for gold investors as it has created an attractive opportunity to buy for those able to act quickly. It pushed gold lower in Tuesday trading, with the precious metal hovering around the £1,303 ($1,789) level, meaning now is an optimal moment to add the yellow metal to your portfolio. Buy now before price momentum swings back to the bulls.