Gold Price Holds Near High as US Consumer Sentiment Plunges

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 that the preliminary reading of its Consumer Sentiment survey for September was 47.8, far worse than expectations, which called for a reading of 51 and well below August's final reading of 51.7.

Surveys of Consumers Director Joanne Hsu said 'Consumer sentiment receded less than 4 index points for the second consecutive month of decreases,' adding that 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 year-ahead inflation expectations jumping to 4.6%, the highest reading since June, and long-run inflation expectations ticking up to 3.4%.