Hot Inflation Data Sends Gold Prices Lower Ahead of Fed Rate Decision

Gold prices declined on Thursday after the release of US inflation data that exceeded expectations. The Federal Reserve may raise interest rates this week in response to the higher-than-expected inflation rate.

The core consumer price index, which excludes food and energy costs, increased by 0.3% from a month earlier in August. This data was released on Friday and prompted gold prices to drop further.

Gold has been trading near $4,340 an ounce for the past week after falling for three consecutive weeks.