Gold futures fell for the second time in three sessions on speculation that the Federal Reserve will raise U.S. interest rates sooner than forecast, crimping demand for the precious metal as an alternative investment.
U.S. consumer prices rose 0.3 percent in June after a 0.4 percent gain in May, adding pressure on the Fed to increase its benchmark rate from a record low. The dollar rose to a four-week high against a basket of major currencies.
This year, gold has climbed 8.8 percent as turmoil in the Middle East and Ukraine boosted demand for a haven. European Union governments pressed Russian President Vladimir Putin to speed a probe into the downing of Malaysian Air flight MH17 or face more sanctions. U.S. Secretary of State John Kerry put the onus on the Gaza Strip’s Hamas rulers to halt two weeks of fighting with Israel.