Gold Futures Settle Modestly Lower

Gold prices drifted lower on Tuesday as the dollar rebounded a bit from recent losses.

The dollar index, which rose to 104.05 in the Asian session, dropped to a low of 103.50 after the inflation data, but recovered some lost ground subsequently. It was last seen hovering around 103.65, up marginally from the previous close.

Gold futures for April ended lower by $5.60 at $1,910.90 an ounce.

Silver futures for May ended up $0.122 at $21.970 an ounce, while Copper futures for May settled at $4.0030 per pound, down $0.0505 from the previous close.

Gold prices rose to a six-week high on Monday amid worries over the fallout from the collapse of Silicon Valley Bank and Signature Bank.

Data from the Labor Department this morning showed consumer price index rose by 0.4% in February after climbing by 0.5% in January.

Core consumer prices, which exclude food and energy prices, increased by 0.5% in February after rising by 0.4% in the previous month. Economists had expected core prices to rise by 0.4%.

The report also showed the annual rate of consumer price growth slowed to 6% in February from 6.4% in January.

The slowdown in year-over-year price growth may help offset recent concerns about the outlook for interest rates ahead of next week's Federal Reserve meeting.

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