Gold ends at 4-week low after US inflation data

Gold prices ended lower today, Feb. 13, with the US dollar and bond yields rising amid renewed fears of monetary tightening following US data that showed inflation recording a higher-than-anticipated growth pace.

Bullion for April delivery plunged by 1.25%, or $25.80, to finish at $2,007.20 per ounce — the lowest close since Jan. 17 when prices touched $2,006.50 an ounce, after hitting $2,047.30 in early trading.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, gained 0.65% to stand at 104.86 points at 09:48 pm Makkah time.

Excluding volatile food and energy prices, the US core Consumer Price Index (CPI) accelerated by 0.40% in January, climbing 3.9% from a year ago, with expectations suggesting a 0.3% and 3.7% rise, respectively.

The CME FedWatch tool showed that market forecasts for policy fixation by the Federal Reserve during the March meeting grew to 91.5%, compared to 84% a day ago. Further, projections for no policy change during May increased to 64.6% from 39.3% the day before.