Gold continues its decline

Gold extended a three-day slide ahead of inflation data that will shape expectations for U.S. monetary policy and the dollar. Gold extended a three-day slide ahead of inflation data that will shape expectations for U.S. monetary policy and the dollar. Bullion settled above $2,300 an ounce after falling more than 3% in the first three sessions of the week as geopolitical risks in the Middle East eased, driving demand for safe-haven assets to ease. A series of declines had pushed the precious metal to its lowest close since April 4. Investors are set to release the Fed’s preferred measure of inflation, the personal consumption expenditures index, on Friday. Price pressures are expected to remain elevated in March. That would support arguments that interest rate cuts are delayed and that gold will be adversely affected by nonpayment of interest. Gold has gained strongly this year, hitting a record high earlier this month despite fading expectations that the Fed will ease policy. The shift helped the U.S. currency and Treasury yields, which have traditionally been a drag on bullion. The metal’s strong performance has been linked to central bank purchases, increased interest in some Asian markets including China and the possibility that investors are seeking protection against sticky inflation. Spot gold was up 0.1 percent at $2,317.35 an ounce as of 1:24 p.m. in Singapore, where it has gained more than 12 percent this year. Silver was little changed, while platinum and palladium fell. The Bloomberg Dollar Spot Index was flat.