London — Gold retreated on Wednesday from the previous day’s eight-week high as data showing the biggest pick-up in consumer prices in 2-1/2 years lifted the dollar and U.S. Treasury yields. Moves were muted however as the markets awaited a speech by Federal Reserve chair Janet Yellen later in the session, which will be closely watched for clues on US monetary policy. Spot gold was down 0.2% at $1,214.46 an ounce at 14:50 GMT, while US gold futures for February delivery were $1.50 lower at $1,214.40. Gold hit its highest since mid-November on Tuesday, having fallen in the immediate wake of Donald Trump’s US election victory that month as his pledge to cut taxes and boost spending fuelled a rally in Treasury yields and buying of cyclical assets at gold’s expense. Such a policy would likely prove inflationary, prompting more US rate hikes. The Labor Department said on Wednesday its Consumer Price Index rose 0.3% last month and 2.1 percent in the 12 months through December, the biggest...
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