The recent Consumer Confidence survey conducted in the US revealed a surprising increase in consumer confidence for the month of May. In marked contrast to the previous few months, May's figure was the highest it has been since September 2008. However, while better than at the start of the year, the figure remains at historically depressed levels. Furthermore, US house prices have dropped over 18% in March from the same period last year.

The Dow Jones jumped 2% after the Consumer Confidence news and the dollar gained some strength. In contrast, both oil and gold stagnated slightly with gold ending the day pretty much where it started at $947 and oil at $61. Gold did test $959 yesterday and this is now seen as the next level of resistance.

However, with North Korea threatening to attack South Korea, Ali Naimi, the Saudi Arabian oil minister saying that increased consumption by China would push oil prices higher, (historically, oil and gold have a positive correlation,) and the negative data from the US will ensure that gold stays on the radar of investors.