Gold above $4,500/oz as Preliminary Consumer Sentiment rises to 54 in January, but long-run inflation expectations rise

NEW YORK (January 9) The gold market is trading higher ahead of the weekend after the latest data showed consumer sentiment in the U.S. improving, while longer-term inflation expectations ticked higher.

The University of Michigan announced on Friday that the preliminary reading of its Consumer Sentiment survey for January was 54. The data was better than expectations, as the consensus forecast of economists called for a reading of 53.5, and it was also better than December’s final reading of 52.9.

“Consumer sentiment inched up for the second straight month and reached its highest reading since September 2025,” said Surveys of Consumers Director Joanne Hsu.

Gold prices shot to fresh session highs following the 10 am EST data release, with spot gold last trading at $4,500.02 per ounce for a gain of 0.50% on the day.

The improvements in January were concentrated among lower-income consumers, with sentiment falling for those with higher incomes,” Hsu noted.

“All told, while consumers perceived some modest improvement in the economy over the past two months, their sentiment remains nearly 25% below last January’s reading,” she said. “They continue to be focused primarily on kitchen table issues, like high prices and softening labor markets. Although consumers’ worries about tariffs appear to be gradually receding, they remain guarded about the overall strength of business conditions and labor markets.”

Year-ahead inflation expectations in January held steady at 4.2%. “This is the lowest reading since January 2025 but remains well above that month’s 3.3%,” Hsu wrote. “Long-run inflation expectations ticked up slightly from 3.2% in December to 3.4% this month. In comparison, readings ranged between 2.8 and 3.2% in 2024, and were below 2.8% throughout 2019 and 2020.”

KitcoNews