09:21 AM EDT, 09/11/2024 (MT Newswires) -- Gold prices weakened early on Wednesday as the dollar and treasury yields rose after a report showed U.S. inflation slowed more than expected last month.

Gold for December delivery was last seen down US$9.00 to US$2,534.10 per ounce.

The U.S. Bureau of Labor Statistics reporting the Consumer Price Index (CPI) rose by 2.5% annualized in August, down from 2.9% a month earlier and under the consensus estimate for 2.6% rise, according to Marketwatch. Core CPI, excluding volatile food and energy prices, was unchanged from July, rising at a 3.2% annualized pace, in line with the consensus forecast.

The data firms expectations the Federal Reserve will cut interest rates by 25 basis points next week, when its policy committee ends its two-day meeting next Wednesday, beginning an expected series of rate cuts as the labor market slows.

The dollar rose following the report, with the ICE dollar index last seen up 0.07 points to 101.7.

Treasury yields also moved higher, with the U.S. two-year note last seen paying 3.666%, up 5.9 basis points, while the yield on the 10-year note was up 2.5 basis points to 3.675%.