Gold has ticked higher in the Monday session. In North American trade, the spot price for an ounce of gold is $1275.72, up 0.28% on the day. On the release front, Personal Spending jumped 1.0%, beating the estimate of 0.8%. On Tuesday, the US releases CB Consumer Confidence.
The US consumer is optimistic about the economy, and that confidence has translated into stronger spending. Personal Spending gained 1.0% in September, its sharpest gain since April 2016. The strong reading comes on the heels of Friday’s UoM Consumer Sentiment Report, which hit an all-time high of 100.7 points in September. Another key consumer confidence will be reported on Tuesday, and the markets are expecting more good news. CB Consumer Confidence is forecast to climb to 121.1, up from 119.8 in the previous release. Consumer spending is a key driver of the economy, accounting for two-thirds of economic growth.
The US economy received a high grade on Friday, as Advance GDP for the third quarter posted a gain of 3.0%. This easily beat the forecast of 2.5%, and kept close pace with Final GDP in Q2, which gained 3.1%. The strong reading is welcome news for the Federal Reserve, which is widely expected to raise rates at the December meeting. Employment and consumer data has been strong, with weak inflation the only real fly in the ointment. Fed Chair Janet Yellen and other policymakers have downplayed the significance of low inflation, and the markets have responded by pricing in at December hike at 96%.
