- The gold market is trading at session highs as U.S. consumer confidence falls sharply in March, even as inflation expectations remain persistently high, according to preliminary data from the University of Michigan.
"This month's decrease was already fully realized prior to the failure of Silicon Valley Bank, at which time about 85% of our interviews for this preliminary release had been completed," the report said. "Overall, all components of the index worsened relatively evenly, primarily on the basis of persistently high prices, creating downward momentum for sentiment leading into the financial turmoil that began last week.
Although inflation expectations dropped to their lowest level since April 2021, the report noted that it is still well above the range seen in the two years before the COVID-19 pandemic.