Gold, Silver Prices Tumble as US Inflation Data Fuels Rate Hike Bets

International gold and silver prices declined on Wednesday after stronger-than-expected US inflation data pointed to persistent inflationary pressures, reinforcing expectations of a Federal Reserve rate hike next month.

The U.S. personal consumption expenditures (PCE) price index for July was released on Wednesday, showing that inflation remains a concern for traders.

Gold futures for December delivery fell 0.88% to settle at $4,653.30 per ounce, while silver futures for September delivery dropped 0.96% to close at $68.026 per ounce on the New York Mercantile Exchange.

The declines came as traders increased their bets on a rate increase at the Fed's September meeting in response to the inflation data.