Gold prices fall, trades above $1,800

Gold prices fell on Wednesday, but it is trading above $1,800 per ounce, after the inflation rate in the United States recorded a lower level than expectations in August.

The US consumer price index data showed a rise of 0.3% in August month-on-month (m-o-m), less than analysts' expectations for a 0.4% increase.

This data raised investors' concerns about the Federal Reserve's plan to start reducing its purchases of assets related to the pandemic, as it was expected to start this year.

Gold futures contracts for December delivery fell 0.2% to reach $1,803.20 per ounce at 09:50am Makkah time. Spot price for the yellow metal declined 0.2% to reach $1,800.15 per ounce.

Elsewhere, silver futures for December delivery fell 0.6% to reach $23.75 an ounce, spot price for platinum delivery declined 1.1% to reach $933.26, while palladium decreased 0.9% to reach $1,957 per ounce.

The dollar index - which measures the performance of the US currency against a basket of six currencies – settled at 92.591 points.