American consumers were more pessimistic about the path of the economy in October, according to latest survey results published on Tuesday. The Conference Board's Consumer Confidence Index dropped unexpectedly to 98.6 points in October, following the prior month's 104.1, the best level since 2007, while market analysts anticipated a milder decrease to 101.5 during the reported period. The Present Situation Index fell to 120.6 from 127.9 in the tenth month of the year, while the Expectations Index dropped to 83.9 from 87.2 registered last month. Furthermore, the share of respondents expecting more jobs in the upcoming months declined to 13.1% from September's 15.7%, whereas the percentage of those expecting incomes to rise remained unchanged at 17.5% in October. Nevertheless, the share of respondents expecting fewer jobs fell to 17.0% from 18.1% seen in September, as well the percentage of those expecting incomes to drop to 9.8% from the previous month's 10.4%.
Activity in the US manufacturing sector expanded more than expected last month, according to a private survey published on Monday. The Market Research Group said that its Preliminary Manufacturing Purchasing Manager's Index for the United States jumped to 53.2 in October, following the preceding month's final reading of 51.5 and surpassing the 51.6 market forecast. Any reading above 50 points indicates an expansion and is based on a survey of manufacturers across the country. US manufacturers recorded strongest upturn in business conditions for 12 months in October, while both output and new order growth touched their one-year peaks last month. The US manufacturing sector was hit severely by the US Dollar's sharp appreciation and weak global economic growth. Back in September, the PMI rebounded from a contractionary reading of 49.4, the first drop below the 50 point level since February. Furthermore, some respondents mentioned there was a rise in international and domestic sales.
Upcoming fundamentals: Minor US data
In the second part of the day minor data from the US will be published, as at 12:30 GMT US Goods Trade Balance and Preliminary Wholesale Inventories will be available. Afterwards, at 13:$5 GMT the US Flash Services PMI will be out. Last but not least, the US New Home Sales are set to be released at 14:00 GMT.
Gold breaks resistance on Wednesday
Daily chart: The yellow metal surged on Wednesday morning, as it was ignoring the strength of the US Dollar and broke through two resistance levels and was about to break the last remaining resistance of the cluster. Previously, the metal found support in the weekly PP and attempted to break through the resistance cluster located from 1,269.86 to 1,276.81. Traders should keep their eyes on the 1,276.81 level, where the last resistance is located at, as the further way to 1,287.72 would be open, if the weekly R1 gets broken.Traders remain bullish
Spreads (avg,pip) / Trading volume / Volatility
Market participants foresee the price of gold below 1,300 in January
Traders who were asked regarding their longer-term views on gold between September 26 and October 26 expect, on average, to see the metal below 1,300 in January. Generally, 43% (+2%) of participants believe the price will be above 1,300 in ninety days. Alongside, 43% of those surveyed reckon the price will trade in the range between 1,150 and 1,300 over the next three months.