(Kitco News) - The gold market is trading lower ahead of the weekend after the latest data showed final consumer sentiment in the U.S. improving once again, while inflation expectations pulled back further from their elevated levels.
The University of Michigan announced on Friday that the final reading of its Consumer Sentiment survey for June was 60.7, well above May’s final reading of 52.2 and also above the preliminary reading of 60.5. The preliminary data was far better than expectations, as the consensus forecast of economists called for a 53.5 reading.
“Consumer sentiment surged 16% from May in its first increase in six months—confirming the mid-month reading—but remains well below the post-election bounce seen in December 2024,” said Surveys of Consumers Director Joanne Hsu. “The improvement was broad-based across numerous facets of the economy, with expectations for personal finances and business conditions climbing about 20% or more.”
“Despite June’s gains, however, sentiment remains about 18% below December 2024, right after the election; consumer views are still broadly consistent with an economic slowdown and an increase in inflation to come,” Hsu added. “Consumers continue to be concerned about the potential impact of tariffs, but at this time they do not appear to be connecting developments in the Middle East with the economy.”
The gold market is trading near the lower edge of its daily range following the 10 am EDT data release, with spot gold last trading at $3,275.71 per ounce for a loss of 1.57% on the day.
All five components of the index improved in June.
“Year-ahead inflation expectations plummeted from 6.6% last month to 5.0% this month,” the report noted. “Long-run inflation expectations receded for the second straight month, falling back from 4.2% in May to 4.0% in June. Both readings are the lowest in three to four months. Consumers’ fears about the potential impact of tariffs on future inflation softened somewhat in June. Still, inflation expectations remain above readings seen throughout the second half of 2024, reflecting widespread beliefs that risks to inflation have not fully abated.”
