Gold Slides as Consumer Sentiment and Inflation Expectations Shift

The report highlights a significant shift in public outlook, with year-ahead inflation expectations climbing to 4.6%—the highest level since June. Joanne Hsu, director of the Surveys of Consumers, noted that this figure substantially eclipses the 3.4% recorded in February. Long-run inflation projections also edged up to 3.4%, breaking a three-month streak of stability at 3.3%.

While sentiment improved slightly from preliminary figures, the index remains 15% lower than in January 2026. Consumers are increasingly wary of business conditions, citing fuel prices and geopolitical friction as primary drivers of economic instability. Political divisions are deepening, with Republican sentiment dropping 20% and Democratic sentiment falling 13% since the start of the year. Investors responded to the data immediately, driving gold down 0.20% shortly after the 10 a.m. ET release.