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Gold prices fell to 11-week lows as traders priced in higher odds of a Federal Reserve rate hike later this year. The non-yielding metal lost 2.3% to $4,163, pressured by expectations of tighter monetary policy. The Fed's potential rate increase reduces gold's appeal as investors shift to higher-yielding assets. The upcoming US CPI data will be critical in confirming inflation trends and shaping central bank policy. A stronger-than-expected CPI report could accelerate rate hike expectations, further weighing on gold prices. Traders should monitor the CPI release and Fed officials' comments for directional clues.
