Gold price holds near high after preliminary Consumer Sentiment falls to 47.8, inflation expectations spike

By Ernest Hoffman – Kitco News

The gold market is trading near session highs after the latest data showed consumer sentiment in the U.S. declining, with inflation expectations shooting higher.

The University of Michigan announced on Friday that the preliminary reading of its Consumer Sentiment survey for September was 47.8. The data was far worse than expectations, as the consensus forecast of economists called for a reading of 51, and it was also well below August’’s final reading of 51.7.

“Consumer sentiment receded less than 4 index points for the second consecutive month of decreases,” said Surveys of Consumers Director Joanne Hsu. “Democrats and Republicans alike posted sizable declines, while independents were little changed from August. Year-ahead expectations for both personal finances and business conditions plunged. With a resurgence in fuel prices and trade tensions, consumers anticipate greater pressures on their pocketbooks to come.”