US consumer confidence exceeded expectations and boosted the market: Gold prices turned higher on Friday, stabilizing above the $4000 level.

After the latest US economic data showed an improvement in consumer confidence and a softening of short-term inflation expectations, gold futures turned around and rose on Friday. The preliminary reading for the University of Michigan's July monthly consumer confidence survey came in at 54.4, better than expected and higher than the final values of 49.5 in June and 44.8 in May. One-year inflation expectations for this month have eased slightly from 4.6% to 4.2%, although this reading is still higher than the 3.4% seen in February before the US-Iran conflict started. Since the outbreak of war in late February, gold prices have fallen by about 25% under the heavy pressure from market expectations that the war-induced inflation may sustain higher rates for a longer period of time. While some weaker-than-expected US inflation data released this week eased bets on the Fed tightening monetary policy, escalating hostilities between the US and Iran have raised concerns among investors that higher energy prices may sustain high inflation and prompt the Fed to raise rates. Mitsubishi UFJ Financial Group (MUFG) analyst Soojin Kim stated in a report, "Recent price trends suggest that the market is currently placing more weight on the prospect of 'US rates staying high for longer' compared to gold's traditional safe-haven demand. This makes gold appear more fragile unless geopolitical risks a broader deterioration in financial market sentiment." The front-month gold futures for July delivery on the New York Mercantile Exchange rose by 0.7% to $4,012.70 per ounce, while the front-month silver futures for July delivery edged up by 0.2% to $56.038 per ounce. Over the week, gold and silver fell by 2.2% and 6.3% respectively.