(Kitco News) - The gold market is holding relatively steady after the latest data showed consumer sentiment in the U.S. improving, while inflation expectations pulled back from last month’s highs.
The University of Michigan announced on Friday that the preliminary reading of its Consumer Sentiment survey for June was 48.9. The data was better than expectations, as the consensus forecast of economists called for a reading of 46, and it was also above May’s final reading of 44.8.
“This month, consumer sentiment ticked up about four index points, or 9%, with consumers experiencing some relief due to the early-month easing in gasoline prices,” said Surveys of Consumers Director Joanne Hsu. “This measured improvement in sentiment was widespread, seen across age, education, and political party. Lower-income consumers exhibited a particularly strong sentiment increase, consistent with the fact that gasoline comprises a larger share of their budgets.”
Spot gold continued to oscillate on both sides of the $,200 level following the 10 am EST data release, with spot gold last trading at $4,195.48 per ounce for a loss of 0.38% on the day.
The June index reflected improvements in assessments and expectations of personal finances and business conditions, but the prior months’ deterioration meant the indexes remained low by historical measures.
Year-ahead inflation expectations ticked down from 4.8% in May to a still-elevated 4.6% this month. “The current reading substantially exceeds the 3.4% reading seen in February 2026 prior to the start of the Iran conflict, along with all 2024 readings,” Hsu noted. “Long-run inflation expectations fell back from 3.9% last month to 3.4% in June, remaining notably higher than the 2.8% to 3.2% range seen in 2024.”
“Even with June’s early gains, however, views of the economy are still relatively dour,” she cautioned. “Sentiment is currently 13% below January 2026 and 19% below a year ago, as consumers remain focused on kitchen table issues,” Hsu said. “They feel burdened by the recent escalation in inflation and worry that higher inflation could remain stubborn going forward, particularly in the short run.”
