Economic news on the morning of August 16: World gold price increased slightly at the end of the week

According to preliminary data from the University of Michigan, the consumer sentiment index in August was only 58.6 points, lower than the 61.7 point in July and below the forecast of 62 points by experts. This is the first time in four months that the index has decreased. The main reason is the concern about rising inflation.

Immediately after the data was released, the world gold price increased slightly. Spot gold is currently at 3342.04 USD/ounce, up 0.03% on the day.

Most of the components of the August index fell, while both short-term and long-term inflation expectations rose. Consumer spending also reflected the impact of higher prices.

Purchasing conditions for durable goods fell sharply by 14%, the lowest in a year, due to rising prices, the report said. Current personal finances also declined slightly due to concerns about purchasing power. In contrast, expectations for future income and personal finances increased slightly, but remained low.

Sentiment has improved somewhat since April, when consumers were most worried about the economy due to tariff tensions. However, many still expect inflation and unemployment to continue to worsen in the coming period.

Expectations for inflation over the next year rose from 4.5% in July to 4.9% in August, across all demographic groups and political preferences. Longer-term inflation expectations also rose from 3.4% to 3.9%. This is the first increase after two months of declines in short-term inflation and three months of declines in long-term inflation. Both measures remain well below their peaks in April and May 2025.

Overall, Americans are not as pessimistic about the economy as they were in April when the new tariffs were announced. However, they are still worried that inflation and unemployment could worsen in the future. This makes gold a safe choice for many people who want to protect their assets in an uncertain economic environment.