XAU/USD falls 2.3% to $4,163 ahead of US CPI data, pressured by expectations of tighter Fed policy.
Gold prices extended losses on Wednesday, hitting an 11-week low as traders priced in a potential Federal Reserve interest rate hike later this year. XAU/USD traded near $4,163, down 2.3% on the day, as the non-yielding metal faced pressure from rising US Treasury yields and a stronger USD.
The decline follows growing speculation that the Fed may maintain higher rates for longer to combat persistent inflation. Markets are closely watching upcoming US CPI data for further clues on monetary policy direction.
Demand for gold has softened amid expectations of tighter financial conditions, reducing its appeal as a safe-haven asset.