Gold Stays Near Peaks as U.S. Consumer Sentiment Slips to 47.8 With Inflation Expectations Rising

Gold prices stayed close to daily highs after weaker-than-expected U.S. consumer sentiment data emerged, accompanied by rising inflation concerns. The University of Michigan’s preliminary September sentiment index printed at 47.8, below the 51 forecast and last month’s 51.7 reading.

Surveys of Consumers Director Joanne Hsu said sentiment fell for a second straight month, with sizable drops among both Democrats and Republicans. She pointed to sharply lower expectations for personal finances and business conditions amid resurgent fuel prices and trade tensions. Overall sentiment now sits 16% below February and 13% lower than a year ago.

Year-ahead inflation expectations jumped to 4.6% from 4.0%, the highest since June, while long-run views ticked up to 3.4%. Spot gold last changed hands at $4,389.43 per ounce, up 1.68% on the day.