Gold hit lowest since Dec. 13
U.S. consumer prices rose more than expected in January
Markets push back on hopes for first Fed rate cut to June now

Feb 14 Reuters Gold prices extended declines on Wednesday, languishing below the key 2,000perounce mark, pressured by a strongerthanexpected U.S. inflation report that caused investors to pull back on bets of rate cuts by the Federal Reserve.

Spot gold fell 0.2 to 1,989.10 per ounce as of 0925 GMT its lowest since Dec. 13. Bullion fell about 1.4 on Tuesday, its biggest daily loss since Dec. 4.

U.S. gold futures slipped 0.2 to 2,002.30oz.

The dovish predictions from the last few months have vanished and investors are now pretty sure that the Fed will need to keep rates higher for a bit longer, said Carlo Alberto De Casa, market analyst at Kinesis Money.

Data on Tuesday showed U.S. consumer prices rose more than expected in January, at a 3.1 annual rise, above forecasts of a 2.9 increase.

Traders have lowered their bets from four quarterpoint rate cuts for 2024, in line with the Fed39;s dot plot released in December. The Fed may wait until June before cutting interest rates.

According to the CME Fed Watch Tool, opens new tab, traders now expect an around 78 chance of a rate cut in June. Lower interest rates boost nonyielding bullion39;s appeal.

Keeping pressure on gold, the U.S. dollar index hovered near a threemonth peak, while 10year Treasury yields were near a 212month high.

Investors will now focus on U.S….