UMich consumer sentiment rise causes gold prices to drop.

Gold prices have fallen over 1% as U.S. consumer sentiment rose to 63.5, beating expectations and adding to expectations that the Federal Reserve will raise interest rates by 25 basis points next month. Consumers see inflation rising 4.6% by this time next year, up from 3.6% reported in March, supporting calls for the Federal Reserve to raise interest rates again next month. Long term, consumers see inflation relatively stable at 2.9%, unchanged for the fifth consecutive month. Markets now see a more than 85% chance that the Federal Reserve will continue to tighten interest rates.