Gold near two-week high on inflation risks

And the price of gold in spot transactions rose 0.4 percent to $ 1827.86 an ounce (an ounce) by 1849 GMT, after hitting its highest level since January 26, earlier in the session, at $ 1828.12.

And US gold futures rose 0.3 percent to $ 1827.90 at the settlement, before US inflation data expected to be released on Thursday.

A Reuters poll indicates that the US consumer price index is expected to rise 7.3 percent on an annual basis in January after strong labor market data last week stoked inflation fears.

Gold is very sensitive to rising US interest rates, which increases the opportunity cost of buying non-yielding gold. Higher interest rates are also boosting the dollar, putting pressure on the precious metal, which is priced in the US dollar.

The dollar index rose 0.3 percent. The benchmark 10-year US Treasury yield reached its highest level in more than two years.

As for other precious metals, the price of silver rose 0.9 percent to $23.19 an ounce, while the price of platinum rose 1.4 percent to $1,034.36. Palladium fell 0.2 percent to $2,258.87.

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