The impact of the American consumer confidence index (CB) on global markets and gold prices - May 27, 2025*
The Consumer Confidence Index issued by the "Conference Board" (CB) is one of the most prominent economic indicators that monitor the attention of American consumers towards the economy, and is used as a leading indicator for predicting consumer spending, which constitutes more than a third of the United States' gross domestic product.
Today, Tuesday, May 27, 2025, the reading of the index for the city of May will be announced at 14:00 GMT. Expectations point to 87.1 points, compared to 86.0 points last April.
The effect of the index on the US dollar
If the reading is higher than expected, it reflects the optimism of consumers, which strengthens the strength of the US dollar, due to the possibility of increased consumer spending. But if the reading is lower than expected, it may lead to the decline of the dollar as a result of fears of economic slowdown.
The effect of the index on gold prices
There is an inverse relationship between consumer confidence and gold prices. So when confidence is high, the demand for gold as a safe haven decreases, which leads to a decrease in prices. As for the decline in confidence, the demand for gold increases, which pushes the price up.
The American consumer confidence index is considered an important tool for understanding market sentiments. Reading today, there is a high incidence of frauds in currency and gold prices, so investors are advised to carefully follow the results and analyzes to make informed exploitative decisions.
The technical analysis opinion of the Relative Strength Index (RSI)
For today's gold prices - May 27, 2025
Recent technical data indicates that the relative strength index (RSI) of gold against the US dollar (XAU/USD) is currently in the neutral zone, where it registers around 50 points, which reflects the balance between buying and selling forces.
Technically, gold faces strong resistance at the level of $3,350 per ounce. If this level is breached, the price will move towards 3,405 dollars, which indicates the continuation of the upward trend. However, in the event of failure to cross the resistance, the price may witness a downward correction towards the support levels at $3,295, with the possibility of retreating to $3,250 if the selling pressure continues.
Based on these data, traders are advised to monitor the price movement around the level of 3,350 dollars, as the penetration or reversal of this level will determine the future direction of gold.
This article does not refer to any buying or selling transactions, but rather represents the author's point of view.
Thanks.
The Consumer Confidence Index issued by the "Conference Board" (CB) is one of the most prominent economic indicators that monitor the attention of American consumers towards the economy, and is used as a leading indicator for predicting consumer spending, which constitutes more than a third of the United States' gross domestic product.
Today, Tuesday, May 27, 2025, the reading of the index for the city of May will be announced at 14:00 GMT. Expectations point to 87.1 points, compared to 86.0 points last April.
The effect of the index on the US dollar
If the reading is higher than expected, it reflects the optimism of consumers, which strengthens the strength of the US dollar, due to the possibility of increased consumer spending. But if the reading is lower than expected, it may lead to the decline of the dollar as a result of fears of economic slowdown.
The effect of the index on gold prices
There is an inverse relationship between consumer confidence and gold prices. So when confidence is high, the demand for gold as a safe haven decreases, which leads to a decrease in prices. As for the decline in confidence, the demand for gold increases, which pushes the price up.
The American consumer confidence index is considered an important tool for understanding market sentiments. Reading today, there is a high incidence of frauds in currency and gold prices, so investors are advised to carefully follow the results and analyzes to make informed exploitative decisions.
The technical analysis opinion of the Relative Strength Index (RSI)
For today's gold prices - May 27, 2025
Recent technical data indicates that the relative strength index (RSI) of gold against the US dollar (XAU/USD) is currently in the neutral zone, where it registers around 50 points, which reflects the balance between buying and selling forces.
Technically, gold faces strong resistance at the level of $3,350 per ounce. If this level is breached, the price will move towards 3,405 dollars, which indicates the continuation of the upward trend. However, in the event of failure to cross the resistance, the price may witness a downward correction towards the support levels at $3,295, with the possibility of retreating to $3,250 if the selling pressure continues.
Based on these data, traders are advised to monitor the price movement around the level of 3,350 dollars, as the penetration or reversal of this level will determine the future direction of gold.
This article does not refer to any buying or selling transactions, but rather represents the author's point of view.
Thanks.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.