Investing.com – Gold prices hovered above session lows pressured by a rising dollar on the back of a duo of bullish economic reports that lifted investor expectations of bullish U.S. economic growth.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell by $6.48, or 0.51%, to $1,271.22 a troy ounce.
The Conference Board’s consumer confidence gauge rose to 125.9 in October from 119.8 in September, beating economists’ forecast for a reading of 121.
Consumer sentiment is a leading indicator of consumer spending, which plays a major role in overall economic activity.
The Chicago Purchasing Managers’ Index (PMI) jumped to 66.2, above the September reading of 65.2. That topped expectations for a reading of 61
The bullish reports come ahead of a busy few days on the economic calendar concerning monetary policy as the Federal Reserve is slated to announce its interest rate decision on Wednesday while President Donald Trump is expected to announce the next head of the Fed on Thursday.
President Donald Trump is leaning toward appointing Federal Reserve Governor Jerome Powell – who shares a similar stance to Janet Yellen on monetary policy – to be next chairman of the Fed, Reuters reported Monday, citing a source.
Gold prices are sensitive to moves higher in both bond yields and the U.S. dollar – A higher dollar makes gold more expensive for holders of foreign currency while an increase in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.