Consumer confidence is declining as COVID-19 rebounds according to the latest Consumer Confidence Index – which is good news for gold with the precious metal edging higher as a result.
Although economists expected that consumer confidence would increase to 102.0 from September’s 101.30, the actual figures fell far short with a reading of just 100.9. The dip suggests gloomy economic data and high unemployment, along with surging infection figures, continue to play on consumer minds – and an even larger decline could be on the cards for next month.
CIBC World Markets economist Katherine Judge says figures over the next few months could be lower still, noting “While the rise in new virus cases as well as fiscal support uncertainty hasn’t proven to completely derail consumer confidence at this point, without a fiscal package, a challenging fall and winter could see the metric push lower in the months to come.”
Gold ascended to a 0.22% increase on the release of the data, again underpinning its appeal as a reliable, solid safe haven in an otherwise turbulent market. With experts predicting more of the same in November, buy now to capitalise.