The gold market has rebounded slightly from its post-payrolls lows after new data showed an unexpected improvement in U.S. consumer sentiment. The University of Michigan's preliminary November reading of its Consumer Sentiment survey came in at 51, surpassing economists' expectations of 48. This marks a 6% increase from the previous month, though sentiment remains 10% lower than in February.
According to Surveys of Consumers Director Joanne Hsu, the modest gains were driven by improvements in expected personal finances and business conditions, particularly among independents. However, sentiment declined for those with large stock portfolios due to recent market volatility. Hsu also highlighted growing consumer anxiety over the possibility of an AI bubble, though cost-of-living concerns remain the top worry.
The survey, conducted between October 20 and November 2, revealed that most consumers anticipated Democratic victories in the midterm elections. Meanwhile, spot gold was trading at $4,047.71 per ounce, down 0.96% on the day following the data release.
The preliminary November reading also showed a decline in inflation expectations. Year-ahead inflation expectations dropped from 4.7% to 4.3%, while longer-run expectations inched down from 3.5% to 3.4%. Despite the improvement, both readings remain higher than pre-Iran conflict levels.