US Consumer Confidence Hits Six-Month Low

31 May, 2023

As at 10 am, AEST.

Gold Spot Price $AU3006.89

Silver Spot Price $AU35.62

Platinum Spot Price $AU1572.30

Housing Market Struggles and Debt Ceiling Deal Reach the Forefront

US consumer confidence has taken a significant hit, falling to its lowest point in six months. Mounting concerns over higher interest rates and the escalating cost of living have left consumers feeling increasingly uncertain about the economic outlook.

Adding to the apprehension is the latest data from the Case-Shiller home price index, which reveals a 1.1% drop for the month of April (YOY). This downward trend highlights the challenges faced by the housing market, as a lack of supply continues to exert pressure.

However, there is a glimmer of hope on the horizon as President Joe Biden and House Speaker Kevin McCarthy have successfully reached a debt ceiling deal.

The urgency to avoid a default on the nation's debt obligations has prompted the swift presentation of the deal to Congress.

In parallel news, Fannie Mae, a leading bank, has forecasted a modest recession in the second half of 2023. This projection further underscores the economic uncertainties and potential challenges that lie ahead.

Gold and Silver look to be starting their recovery from last week’s decline. Gold hit a low of $US1931 yesterday to jump back up to $U1960 overnight. While solving the US debt ceiling may well give share markets a boost in the coming week, the multitude of other issues piling up continues to put pressure on the worldwide economy.

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