09:29 AM EDT, 03/11/2026 (MT Newswires) -- Gold traded lower early Wednesday as the dollar rose after a U.S. inflation measure rose in line with expectations February, lowering hopes the Federal Reserve will cut interest rates.

Gold for April delivery was last seen down $57.10 to US$5,185.00 per ounce.

The drop comes as the U.S. Bureau of Labor Statistics reported the February Consumer Price Index (CPI) rose by 0.3% from the prior month, up from 0.2% in January but matching the consensus estimate according to Marketwatch. Core CPI, excluding volatile food and energy, rose 0.2% month over month, down from 0.3% in January and matching expectations.

Gold remains rangebound under its Jan. 29 record high amid geopolitical turmoil as the United States and Israel continue their war on Iran. The war has forced the closure of the Strait of Hormuz, pushing oil prices higher and raising worries inflation will accelerate and force higher interest rates. However, the CME FedWatch tool sees a 99.3% probability the Fed's policy committee will leave rates unchanged at its March 18 meeting.

The dollar rose following the inflation data, with the ICE dollar index last seen up 0.31 points to 99.13. Treasury yields rose, with the U.S. two-year note last seen paying 3.624%, up 1.5 points, while the yield on the 10-year note was up 2.3 points to 4.186%.