02:00 PM EDT, 04/10/2024 (MT Newswires) -- (Updates prices.)

Gold prices fell on Wednesday, dropping off a record high as the dollar and treasury yields surged after the United States reported inflation rose more than expected last month, cutting hopes for near-term cuts to interest rates from the Federal Reserve.

Gold for June delivery was last seen down US$7.20 to US$2,355.60 per ounce.

The drop comes after the US Bureau of Labor Statistics on Wednesday reported the consumer price index rose by 0.4% in March, unchanged from the February rate but above the consensus estimate for a 0.3% rise, according to Marketwatch, Core inflation, which excludes volatile energy and food prices, also rose 0.4% from February, above expectations for a 0.3% rise. The result is likely to lower expectations the Federal Reserve could begin cutting interest rates as soon as June.

The dollar surged early on expectations interest rates will not soon be lowered. The ICE dollar index was last seen up 0.96 points to 105.11.

Treasury yields were also sharply higher, bearish for gold since it offers no interest, The US two-year note was last seen paying 4.967%, up 21.6 basis points, while the yield on the 10-year note was up 17.8 points to 4.547%.