Inflation Expectations Surge Past Fed Target, Weigh on Gold

The University of Michigan's final September Consumer Sentiment Index rose to 48.1, surpassing the preliminary reading of 47.8.

However, year-ahead inflation expectations jumped to a four-month high of 4.6%, outpacing the increase in sentiment.

This unexpected rise in inflation expectations weighed heavily on gold, despite its relatively flat price near $4,280 an ounce.

The University of Michigan's Surveys of Consumers director Joanne Hsu attributed the jump to persistent price pressure, fueled by renewed worry over fuel costs and trade tensions.