The latest data showed that US consumer confidence further declined, while inflation expectations rose again. Affected by this, the gold market price rose sharply on the eve of the weekend.



A report released by the University of Michigan showed that the final value of the U.S. Consumer Confidence Index in August was 58.2, revised down from the initial estimate of 58.6 and down from 61.7 in July. Economists had expected the index to remain unchanged from the initial estimate.

The data reflects heightened consumer concerns about the economic outlook, which, while up from lows in April and May, remain below levels seen six and 12 months ago.

The current economic conditions index fell to 61.7 in August from 68.0 in July, while the consumer expectations index fell slightly to 55.9 from 57.7.

Consumers' views on buying conditions for durable goods fell to their lowest level in a year, largely due to concerns about high prices, while personal finances also fell 7%.

Business conditions and labor market expectations also contracted in August.

Inflation expectations rebounded. One-year inflation expectations rose to 4.8% in August from 4.5% in July, with the increase seen across multiple demographic groups. Long-term inflation expectations rose slightly to 3.5% from 3.4%, snapping a three-month decline.

Joanne Hsu, Director of Analyst Perspectives and Market Impact Consumer Surveys, said: "This month's decline in confidence was reflected across all age groups, income groups, and those with stock assets. In addition, consumers' views on several aspects of the economy deteriorated: purchase intentions for durable goods fell to their lowest level in a year, and current personal finances decreased by 7%, both of which were due to increased concerns about high prices. Consumers' expectations for business conditions and the labor market also contracted in August. However, consumers' expectations for their personal finances remained stable this month, although they remained relatively depressed compared to a year ago."

The inflation outlook also deteriorated. The report noted: "One-year inflation expectations rose to 4.8% this month from 4.5% last month. This upward trend was reflected in multiple demographics – independents and Republicans saw inflation expectations rise month-over-month, while Democrats' expectations remained unchanged from July. Longer-term inflation expectations rose slightly from 3.4% in July to 3.5% in August."

Joanne Hsu added: "This month's data ended a two-month streak of declining short-term inflation expectations and a three-month streak of declining long-term inflation expectations. However, both readings remain well below the peaks briefly seen in April and May 2025."

Gold prices rose sharply after the data was released.

At 01:40 Beijing time, spot gold last traded at $3,446.01 per ounce, up 0.85% on the day. The gains were driven by declining consumer confidence and rising inflation expectations.