Morning economic news August 16: World gold price increased slightly at the end of the week

Morning economic news August 16: World gold prices increased slightly before the market closed at the end of the week when the US consumer sentiment index unexpectedly decreased in August, while inflation expectations increased.

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

Immediately after the data was released, the world gold price increased slightly. Spot gold is currently at 3,342.04 USD/ounce, up 0.03% on the day.

Most of the August index's components 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 percent, 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 rose 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.

Inflation expectations for the coming year rose from 4.5% in July to 4.9% in August, across all demographic groups and political leanings. Longer-term inflation expectations also rose from 3.4% to 3.9%. This was the first increase after two months of declines in short-term inflation and three months of declines in long-term inflation. However, 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 haven for many people looking to protect their assets in an uncertain economic environment.

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Source: https://baonghean.vn/tin-kinh-te-sang-16-8-gia-vang-the-gioi-tang-nhe-cuoi-tuan-10304526.html