02:07 PM EDT, 03/13/2024 (MT Newswires) -- Gold closed with a gain on Wednesday as treasury yields rose while the dollar weakened.

Gold for April delivery closed up US$14.70 to settle at US$2,180.80 per ounce.

The rise follows on a drop on Tuesday following seven sessions that posted fresh record highs after the United States reported inflation continued to run hot in February, raising fresh doubts the Federal Reserve will soon be ready to lower interest rates. 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.

The central bank's Federal Open Market Committee (FOMC) meets next week, with no change to current rates expected.

"Gold traded lower following the US CPI print and as the recent surge was driven by momentum-driven speculators, a period of consolidation can now be expected ahead of next week's FOMC meeting," Saxo Bank noted.

The dollar weakened early. making gold more affordable for international buyers, with the ICE dollar index last seen down 0.24 points to 102.72.

However treasury yields rose, bearish for gold since it offers no interest. The US two-year note was last seen paying 4.622%, up 3.6 basis points, while the yield on the 10-year note was up 2.9 basis points to 4.189%.