Gold Sees Gains as US Consumer Sentiment Plummets to Lowest Level in Months

The gold market is on the rise after a recent survey showed consumer sentiment in the US declining. The University of Michigan's Consumer Sentiment survey for August came out lower than expected, with a preliminary reading of 51. This marks an 8% decrease from July's final reading and reverses two consecutive months of improvement.

The survey also found that year-ahead inflation expectations have risen to 4.3%, up from 4.2% in July. This is the highest level since the Iran conflict began, and significantly higher than historical averages. Long-run inflation expectations remain steady at 3.3% for the third consecutive month.

The data release has sent spot gold prices approaching its session high, with a gain of 0.87% to $4,389.03 per ounce. The market's response suggests that investors are taking the decline in consumer sentiment and rise in inflation expectations seriously, driving up demand for gold as a safe-haven asset.