(Kitco News) - The gold market is trading at session highs after the latest data showed consumer sentiment in the U.S. improving, with both shorter and longer-term inflation expectations easing.
The University of Michigan announced on Friday that the final reading of its Consumer Sentiment survey for June was 49.5. The data was slightly better than expectations, as the consensus forecast of economists called for a reading of 50. It was also better than the preliminary reading of 48.9, and well above May’s final reading of 44.8.
“Consumer sentiment confirmed its early-month reading, rising about 10% above May as gas prices moderated,” said Surveys of Consumers Director Joanne Hsu. “Increases were seen across income, wealth, and political affiliation. Expected business conditions over the next five years surged 16% as consumers’ worries over long-term consequences of the Iran conflict appear to be easing. Still, sentiment remains in unfavorable territory at 13% below the February 2026 reading prior to the start of the Iran conflict, and nearly 20% less than a year ago.”
“The cost of living remains at the forefront of consumers’ minds; for the third straight month, over half of consumers spontaneously mentioned that high prices are weighing down their personal finances.”
Spot gold shot to a fresh session high and was testing the $4,080 per ounce level after the 10 am ET data release, and last traded at $4,074.13 per ounce for a gain of 1.17% on the day.
The May index showed a drop in year-ahead and longer-run inflation expectations, though these remained high by historical standards.
“Year-ahead inflation expectations inched down from 4.8% in May to a still-elevated 4.6% this month,” Hsu wrote. “The current reading substantially exceeds the 3.4% reading seen in February before the Iran conflict began, along with all 2024 readings. Long-run inflation expectations fell back from 3.9% last month to 3.3% in June, remaining a bit higher than the 2.8% to 3.2% range seen in 2024.”
