Gold Prices Dip to $4,254/oz Low as U.S. Consumer Sentiment Rises and Inflation Expectations Spike

The gold market approached session lows after U.S. consumer sentiment data beat expectations slightly, while inflation forecasts climbed higher. The University of Michigan released its final September Consumer Sentiment reading at 48.1 versus a preliminary 47.8 and forecast of 47.6, though below August’s 51.7.

Surveys of Consumers Director Joanne Hsu noted that assessments of current and expected personal finances weakened about 10% amid rising concerns over high prices, and the short-term business outlook plunged due to worries about fuel costs and renewed trade disputes. Year-ahead inflation expectations jumped to 4.6% from 4.0%, the highest since June, while long-run expectations ticked up to 3.4%.

Spot gold sold off to $4,265.30 per ounce after the release, down 0.20% on the day.