Gold prices drop over 2% as US inflation rises, rate hike fears grow

Gold prices fell by more than 2% on Wednesday after US inflation data exceeded expectations, pushing the dollar and US Treasury yields higher.

The figures fueled expectations that the US Federal Reserve could implement larger interest rate hikes later this year.

Spot gold dropped 2.1% to $4,051.50 per ounce, while US gold futures for December delivery slipped 1.34% to $4,059.30.

Among other precious metals, spot silver fell 2.9% to $51.86 per ounce, and palladium declined 1% to $1,031.20.