(Kitco News) - The gold market is trading not far from session highs ahead of the weekend after the latest data showed consumer sentiment in the U.S. improving, with inflation expectations ticking lower.
The University of Michigan announced on Friday that the final reading of its Consumer Sentiment survey for November was 51. The data was better than expectations, as the consensus forecast of economists called for a reading of 50.5 after the preliminary reading of 50.3, but it was still below October’s final reading of 53.6.
“After the federal shutdown ended, sentiment lifted slightly from its mid-month reading,” said Surveys of Consumers Director Joanne Hsu. “However, consumers remain frustrated about the persistence of high prices and weakening incomes. This month, current personal finances and buying conditions for durables both plunged more than 10%, whereas expectations for the future improved modestly.”
“By the end of the month, sentiment for consumers with the largest stock holdings lost the gains seen at the preliminary reading.” she added. “This group’s sentiment dropped about 2 index points from October, likely a consequence of the stock market declines seen over the past two weeks.”
Gold prices continued to trade near session highs following the 10 am EST data release, with spot gold last trading at $4,069.00 per ounce for a slight loss of 0.21% on the day.
The components of the October index showed improvement in price pressures, with both short-term and longer-term inflation expectations receding.
“Year-ahead inflation expectations inched down from 4.6% last month to 4.5% this month,” Hsu said. “This marks three consecutive months of declines, but short-run inflation expectations still remain above the 3.3% seen in January. Long-run inflation expectations softened from 3.9% last month to 3.4% in November. These expectations are now modestly above the 3.2% January 2025 reading.”
“Despite these improvements in the future trajectory of inflation, consumers continue to report that their personal finances now are weighed down by the present state of high prices,” she added.
