Gold fell below $1700, which is seen as the critical limit by some experts, while experiencing the most significant drop in two months as inflation in the US came in at 8.3 percent, above expectations.
Gold followed a flat course after closing, with the most significant drop two months after higher inflation in the US exceeded expectations.
Spot gold closed 1.3 percent on Tuesday after the announcement of inflation. It had entered an uptrend this month before inflation data surprised the markets.
While economists expected the CPI to increase by 8.1 percent in August compared to the previous year, the actual figure was 8.3 percent. This caused stock values to fall and bond yields and the dollar to rise.
Post-data spot gold has slumped below $1700, which some market analysts have seen as the base for gold price so far this month. This threshold may remain under pressure as CPI data will keep the bank on a hawkish track ahead of the Fed’s meeting next week.
