Daily Gold Market Report

Pandemic’s Psychological Impact
Disconnect Between US Economy and Public Sentiment

(USAGOLD – 12/12/2023) Gold prices are flat with the consumer price index report for November coming in at up 3.1%, with the core rate (minus food and energy) coming in at up 4.0%. Gold is trading at $1981.58, down 37 cents. Silver is trading at $22.85, up 3 cents. Reuters published an article citing a Chicago Federal Reserve study that found a disconnect between the U.S. economy’s performance and public sentiment since the onset of the COVID-19 pandemic in spring 2020. Researchers noticed a decline in optimism for economic outcomes, a change from the historical correlation between economic conditions and consumer and small business sentiment. Possible reasons include higher price levels and altered unemployment expectations. The pandemic’s psychological impact and its influence on economic behavior, has cut deep. In its Stress in America 2023 report last month, the APA said the country was “recovering from collective trauma” that may be rooted in the pandemic but has sources far beyond it, including economic ones.