Gold Prices Fall Amid Fed Rate Hike Prospects

Gold prices fell on Wednesday after U.S. inflation data matched expectations, boosting the likelihood of a Federal Reserve interest-rate hike next month.

The spot gold price declined 1.3% to $4,595.93 per ounce by 1:57 p.m. EDT, following a climb to its highest level since May 14 on Tuesday.

U.S. gold futures settled 0.9% lower at $4,653.30, and the dollar gained 0.3%, making bullion more expensive for holders of other currencies.

Peter Grant, vice president and senior metals strategist at Zaner Metals, said the price action before the data was profit-taking, and with the PCE data largely in line, the market is consolidating within the previous day's range.