Gold futures settled sharply lower on Tuesday, as the peaked US CPI data spurred fears about more aggressive rate hikes from the US Federal Reserve. US inflation index for August unexpectedly rose as declining gasoline prices were offset by gains in the costs of rent and food. Moreover, firmness in headwind dollar also pressured greenback denominated bullion buying.
Gold futures for December declined by $23.20 or 1.3% to settle at $1717.40 ounce on the Comex division of the New York Mercantile. Spot gold fell by 1.2% to $1,703.80 per ounce.