The most active gold contract for April delivery fell 22.50 U.S. dollars, or 1.03 percent, to close at 2,166.10 dollars per ounce.
The U.S. Labor Department reported Tuesday that U.S. consumer price index (CPI) in February increased 0.4 percent for the month and 3.2 percent from a year ago. The monthly gain was in line with expectations, but the annual rate was slightly ahead of the 3.1 percent forecast.
Firmer than expected inflation may keep the Federal Reserve holding rates higher for longer, at least through its June meeting. This prompted profit taking in gold market.
The monthly National Federation of Independent Business sentiment index fell to 89.4 in February from 89.9 in January, the lowest level since May due to continued concerns around inflation.
Silver for May delivery fell 32.10 cents, or 1.30 percent, to close at 24.394 dollars per ounce. Platinum for April delivery fell 12.30 dollars, or 1.31 percent, to close at 928.20 dollars per ounce.
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