Gold futures settled lower on Wednesday, closing weak for a second straight day, weighed down by a stronger dollar and higher yields on government bonds.
Data showing a jump in U.S. inflation in the month of April raised speculation that the Federal Reserve will take some measures to rein in prices.
The dollar index rose to 90.80, gaining more than 0.7%, before easing slightly to 90.72.
Gold futures for June ended lower by $13.30 or about 0.7% at $1,822.80 an ounce.
Silver futures for July ended down by $0.423 at $27.244 an ounce, while Copper futures for July settled at $4.7360 per pound, down $0.0260 from the previous close.
The Labor Department said its consumer price index climbed by 0.8% in April after rising by 0.6% in March. Economists had expected consumer prices to inch up by 0.2%.
Excluding food and energy prices, core consumer prices also advanced by 0.9% in April following a 0.3% uptick in March. Core prices were expected to rise by another 0.3%. The much bigger than expected jump in core consumer prices reflected the largest increase since April of 1982.
With the much bigger than expected monthly increase, consumer prices in April were up by 4.2% compared to the same month a year ago, reflecting the biggest jump since September of 2008.
The material has been provided by InstaForex Company – www.instaforex.com