Gold declines under Fed pressure

Spot gold rose 0.2% during morning trading to approximately $4,039 per ounce. The precious metal had suffered a sharp decline of around 3% in the previous trading session. Rising U.S. Treasury yields and a stronger dollar increased pressure on gold prices.

U.S. consumer inflation rose 0.4% month over month in October, while core inflation increased 0.3%, with both figures exceeding market expectations. The data strengthened expectations that the Federal Reserve (Fed) could raise interest rates in December. Higher bond yields made non-yielding gold less attractive to investors, shifting market attention toward upcoming economic releases. Investors continue to closely monitor the Fed's monetary policy signals and movements in the U.S. dollar.