Gold futures settled lower on Wednesday with the the latest data on U.S. consumer price inflation indicating prospects for another hike in interest rates this year.
A weak dollar helped limit gold's downside. The dollar index, which climbed to 104.97, dropped to 104.56 before recovering around 104.70.
Gold futures for December ended lower by $2.60 0.1% at $1,932.50 an ounce, the lowest settlement in three weeks.
Silver futures for December ended down $0.221 at $23.181 an ounce, while Copper futures for December settled at $3.7930 per pound, gaining $0.0010.
Data from the Labor Department showed the consumer price index climbed by 0.6% in August after inching up by 0.2% in July. The price growth matched expectations.
Excluding food and energy prices, core consumer prices rose by 0.3% in August after edging up by 0.2% in July. Economists had expected another 0.2% uptick.
The Labor Department also said the annual rate of consumer price growth accelerated to 3.7% in August from 3.2% in July. The annual rate of growth was expected to accelerate to 3.6%.
Meanwhile, the report said the annual rate of growth by core consumer prices slowed to 4.3% in August from 4.7% in July, in line with economist estimates.
The data has reinforced expectations the Federal Reserve will leave interest rates unchanged next week. However, many economists feel the slightly bigger than expected monthly increase in core prices leaves the door open for another rate hike.
