Frail US consumer confidence data might have prompted a rise in the dollar price, but a Standard Bank analyst believes the long-term expectation of inflation and dollar weakness remains consistent.

According to Walter de Wet, the results do not mean that inflation will cease to be a consideration in the long term, Reuters reports.

As such it can be expected that the dollar will remain subdued, along with the Gold Price, which traditionally has an inverse relationship with the greenback.

"The longer-term expectations are still in the market that inflation could rise," Mr. De Wet told the news provider.

Fears over the jobs market and wage levels prompted a fall in the Reuters/University of Michigan preliminary index of US consumer sentiment.

This is despite the predictions of economists in a Bloomberg News survey that the confidence would be shown to have grown since the gauge was last taken in July, with Richard Lacaille, the chief investment officer at State Street Global Advisers, saying this points to a slower than expected economic recovery.

"When looking at consumer confidence and retail sales, you can't say we're in for a sharp V-shaped recovery. We need sustainable elements to get a sustainable stocks advance," he told the news provider.

Gold is seen as a safe haven in times of economic uncertainty, intimating that people could see Gold Investment as a way to protect their assets while the global economy continues to flounder.

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