Gold eased on Thursday to a one-month low as the dollar ticked higher after hotter-than-expected inflation data, while hawkish remarks from Federal Reserve officials fueled worries that higher interest rates could stay unchanged beyond March.
Spot gold gave up 0.1% at $2,024.99 U.S. per ounce, after rising as much as 0.8% before the data.
U.S. gold futures settled 0.4% lower at $2,019.20.
The dollar index extended gains after data showed U.S. consumer prices rose more than expected in December, which could delay a much anticipated U.S. rate cut in March.
Cleveland Fed President Loretta Mester said it would likely be too soon for the central bank to cut its policy rate in March, while Richmond Fed chief Tom Barkin said gains on inflation have been too narrowly focused on goods.
Traders see a 67% probability of a rate cut in March, compared with about a 71% chance seen before the report. Higher rates dim the appeal of gold, which pays no interest.
Attention will turn to the U.S. producer price index (PPI) due on Friday.
Silver fell 0.7% to $22.71 U.S. per ounce, its lowest since Nov. 14.
Platinum lost 0.5% to a one-month low of $914.85 U.S., and palladium fell 0.9% to $989.36 U.S..
