On Wednesday, gold futures fell from their highest settlement in over two weeks, threatening to register their first loss in three sessions.
On Tuesday, U.S. inflation statistics bolstered precious metals prices, sending gold contracts to their best close since early September as the dollar weakened. The consumer price index increased by 0.3 percent in August, compared to 0.5 percent in July, according to the government.
December gold GC00, -0.67% GCZ21, -0.67% slid $10, or roughly 0.6 percent, to $1,797.10 an ounce, according to FactSet data, a day after the yellow metal had its highest close for a most-active contract since Sept. 3.
Silver for December delivery SIZ21, -0.10 percent SIZ21, -0.10 percent SIZ21, meanwhile, looked to give back part of Tuesday’s modest gain, losing 2 cents, or nearly 0.1%, to $23.87 an ounce.
According to data issued by the United States on Wednesday, the cost of products declined for the first time in ten months in August, with the import price index falling 0.3 percent.
Separately, the New York Fed's Empire State business conditions index jumped 16 points to 34.3 in September, according to the regional Fed bank, despite economists expecting a reading of 17.2 in a Wall Street Journal survey.
Last month, industrial production in the United States increased by 0.4 percent less than projected, but capacity utilization soared to 76.4 percent, the highest level since December 2019.
In this environment, the US dollar index fell 0.2 percent to 92.486, as measured by the ICE U.S. Dollar Index DXY, -0.14 percent, which compares the world's reserve currency to a half-dozen others. Following a decrease on Tuesday, benchmark 10-year Treasury note yields TMUBMUSD10Y, 1.289 percent are now around 1.295 percent.
A weaker dollar and lower yields may encourage foreign investors to acquire bullion, which does not pay a return. Gold has maintained a slight weekly rise, while the dollar and Treasury yields have fallen.
December copper HGZ21, 2.06 percent, added 1.8 percent to $4.40 a pound among the other Comex commodities.
October platinum PLV21, -0.93 percent down 0.4 percent to $934.30 an ounce, but December palladium PAZ21, 0.93 percent gained 0.7 percent to $1,989 an ounce, recouping some of the 5% loss it experienced Tuesday.