09:15 AM EDT, 03/12/2024 (MT Newswires) -- Gold moved down from a record high early on Tuesday as the dollar and treasury yields rose after the United States reported inflation ran hotter than expected in February, raising doubts the Federal Reserve will begin lowering interest rates as soon as June.

Gold for April delivery was last seen down US$9.00 to US$2,179.60 per ounce, following seven-straight days of fresh record highs.

The US consumer price index rose 3.2% annualized in February, up from 3.1% a month early and ahead of the consensus forecast for a 3.1% rise, according to Marketwatch. Core inflation, which excludes food and energy, rose 3.8%, down from 3.9% in January but above expectations for a 3.7% rise.

The report shows US inflation remains well above the Federal Reserve's 2% target, even as investors expect the central bank to begin cutting interest rates as soon as June.

"With last week's surge primarily driven by aggressive buying from funds, the risk of a setback on a strong (CPI) print is elevated," Saxo Bank noted.

The dollar rose following the data. with the ICE dollar index last seen up 0.11 points to 102.98.

Treasury yields also climbed, with the US two-year note last seen up 1.3 basis points to 4.574%, while the 10-year note was paying 4.141%, up 3.9 basis points.