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Gold price jumped on the soft U.S. economic data. The Conference Board released its consumer confidence index for the U.S. on Tuesday. The index dropped to 95.2 in April from 101.4 in March, missing expectations for a rise to 102.6. March's figure was revised up from 101.3.
It was the lowest level since December 2014.
The increase was driven by the weaker outlook for the labour market and business conditions. The percentage of consumers expecting more jobs in the coming months declined to 13.8% in April from 15.3% in March.
The percentage of consumers expecting business conditions to improve over the next six months fell to 16.0% in April from 16.8% in March.
The Conference Board's consumer expectations index for the next six months decreased to 87.5 in April from 96.0 in March.
The present conditions index plunged to 106.8 in April from 109.5 in March. It was the consecutive decline.
Investors are awaiting the results of the Fed's monetary policy meeting on Wednesday. It is likely that the Fed will delay its first interest rate hike due to the recently released soft U.S. economic data.
The Greek debt crisis remains in focus. Greek Prime Minister Alexis Tsipras reshuffled his team negotiating with European and IMF creditors on Monday. Deputy Foreign Minister, Euclid Tsakalotos, was appointed co-coordinator of the team.
June futures for gold on the COMEX today increased to 1214.90 dollars per ounce.
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