Gold futures slip on renewed US consumer confidence

With the London Bullion Market still closed for the holidays, gold futures on the Comex division of the New York mercantile exchange fell on the back of renewed US consumer confidence. Gold for February delivery closed down 0.2% at US$445.30/oz, taking from gains accumulated during the previous week. US consumer confidence bounced higher in December to its highest level since July, CBS Marketwatch reported, prompting speculation that US economic growth will improve, which could lead to a stronger dollar. CBS Marketwatch quoted John Person of the national futures advisory services as saying that gold had failed to take advantage of the many opportunities it has had in recent months to make stronger advances. As a result, he predicted that a price correction is coming and advised investors to take care. "If gold cannot manage to rally now, I suspect the correction could be severe," Person said, adding that prices could fall to the US$415-420/oz level in the coming weeks.