The University of Michigan Consumer Sentiment Index rose to 77.5 in February from 74.2 in January, beating expectations for 75.4. It was the highest reading since 2008. Bumping up the number was an improved outlook from higher-income households. The number for current conditions jumped more than for consumer expectations. Higher gas prices didn't eat that much into the number, but the finding for lower-income households showed a drop.
After bobbing around $1,406, gold fell to a little above $1,402 just before the number was released. Once it hit the Net, the metal pulled up to $1,406 again. It's odd that good news would push gold up, but that rise was tied to a slight drop in the U.S. Dollar Index after the number was released. Prior to its release, the Index had rallied smartly for more than an hour up to 77.4.
Perhaps gold traders are beginning to see potential inflation in good economic news.
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