Gold's longest run of gains in a year ended on Wednesday as a pick up in US inflation increased the prospects for higher interest rates. Gold lost 0.1 per cent to $ 1,192.03 an ounce. It climbed to a two-week high of $1,195.15 yesterday. Silver, however, was little changed at $ 16.98 an ounce.
The consumer-price index rose 0.2 per cent in February, the first gain in four months, a labour Department report showed in Washington. Higher borrowing costs cut gold’s allure because the metal generally offers returns only through price gains.
Meanwhile, gold gained 3.8 per cent in the previous five days in the longest run since February 2014, after Fed Chair Janet Yellen signaled last week that the central bank is in no hurry to raise rates, even as it dropped a pledge to be patient on tightening.