WASHINGTON (dpa-AFX) - Gold futures settled lower on Friday amid bets the Federal Reserve will keep interest rates higher for longer than earlier thought, and that a rate cut will likely happen only by the second quarter of the year.
A weak dollar helped limit the yellow metal's downside. The dollar index dropped to 103.95 in early New York session, and despite regaining some ground, remains weak at 104.06, down 0.1% from Thursday's close.
The likelihood of a Fed rate cut in March is currently priced at around 20%, compared to 16% before the inflation revisions.
Gold futures for April ended down $9.20 at $2,038.70 an ounce.
Silver futures for March ended lower by $0.042 at $22.594 an ounce, while Copper futures for March settled at $3.6815 per pound, down $0.0205 from the previous close.
Data from the Labor Department showed a modest downward revision to consumer price growth in December. The revised data showed the consumer price index rose by 0.2% in December compared to the previously reported 0.3% increase.
Meanwhile, the increase by core consumer prices, which exclude food and energy prices, was unrevised at 0.3%.
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