(Kitco News) - The gold market is trading near session lows after the latest data showed consumer sentiment in the U.S. ticking higher, with inflation expectations shooting up.
The University of Michigan announced on Friday that the final reading of its Consumer Sentiment survey for September was 48.1. The data was slightly better than the preliminary reading of 47.8 and the expectation of 47.6, but still well below August’’s final reading of 51.7.
“Consumer sentiment ticked down less than four index points in September, reaching the lowest reading in four months and down 15% from January 2026,” said Surveys of Consumers Director Joanne Hsu. “Views of current and year-ahead expected personal finances both weakened about 10% this month, with concerns over high prices continuing to climb. Buying conditions for durables improved a bit, in part due to a perception that completing such purchases now would help consumers avoid higher prices in the future.”
“The short-run outlook for business conditions plunged amid renewed worries that elevated fuel prices and re-escalating trade disputes could pass through to the economy as a whole,” she added. “Overall, interviews reveal broad agreement across the political spectrum that the outlook for the economy has weakened since the beginning of the year. After particularly large declines in sentiment this month, Republican sentiment is now 20% lower than January 2026; Democrats are down 13% over the same period.”
Spot gold sold off sharply in the minutes following the 10 am ET data release, and last traded at $4,265.30 per ounce for a loss of 0.20% on the day.
The September index showed a sharp rise in year-ahead inflation expectations, while longer-run expectations also ticked higher.
“Year-ahead inflation expectations jumped from 4.0% last month to 4.6% this month, the highest reading since June,” Hsu wrote. “The current reading substantially exceeds the 3.4% seen in February before the Iran conflict began, along with all 2024 readings. Long-run inflation expectations ticked up to 3.4%, ending three consecutive months at 3.3%. These expectations remain higher than their 2024 range of 2.8% to 3.2%.”
