Gold falls to $4,125 on higher US inflation
Gold prices declined over 3% to $4,125, near 11-week lows, as US inflation data matched market expectations.
The latest Consumer Price Index accelerated to 4.2% year-over-year in May, its highest level since April 2023.
Higher interest rates, expected due to sustained inflation, are typically negative for gold as it offers no yield.
Markets are pricing in a 33% chance of a 25-basis-point rate hike in September, increasing to 38% for October and 42% for December.