(Kitco News) - The gold market remains under pressure but continues to hold support above $2,000 an ounce as U.S. consumer sentiment holds relatively steady near multi-year highs.
Friday, the University of Michigan said its preliminary consumer sentiment index rose to 79.6, up slightly from January’s reading of 79.0. The data is roughly in line with expectations, as economists looked for a reading of around 80.
“The fact that sentiment lost no ground this month suggests that consumers continue to feel more assured about the economy, confirming the considerable improvements in December and January across various aspects of the economy. Consumers continued to express confidence that the slowdown in inflation and strength in labor markets would continue,” said Joanne Hsu, director of consumer survey at the university, in the report.
At the same time, inflation expectations remain relatively unchanged well within its range. The report said that consumers see inflation rise 3% by this time next year. Expectations are only a tick higher from 2.9% reported in January.
“Long-run inflation expectations remained at 2.9% for the third straight month, staying within the narrow 2.9-3.1% range for 28 of the last 31 months. Long-run inflation expectations were elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic,” Hsu.
The gold market is not seeing much reaction to the latest economic data. April gold futures last traded at $2,010.90 an ounce, down 0.20% on the day.
