Gold price traded lower on U.S. inflation data. Gold price declined by 1.6% since the beginning of this week. It was the largest drop since April 20-24.

The U.S. consumer price inflation rose 0.1% in April, in line with expectations, after a 0.2% gain in March.

On a yearly basis, the U.S. consumer price index fell to -0.2% in April from -0.1% in March. It was the lowest level since October 2009. Analysts had expected the index to remain unchanged at -0.1%.

The U.S. consumer price inflation excluding food and energy gained 0.3% in April, exceeding expectations for a 0.2% increase, after a 0.2% rise in March. It was the largest increase since January 2013.

The rise was driven by higher costs for housing, medical care, furniture and vehicles.

On a yearly basis, the U.S. consumer price index excluding food and energy remained unchanged at 1.8% in April, beating forecasts of a decline to 1.7%.

The core consumer inflation data indicates that the Fed might start to hike its interest rate later this year.

Investors are awaiting a speech by the Fed Chair Janet Yellen, which is scheduled to be at 17:00 GMT. Yellen will speak about the prospects of the U.S. economy.

July futures for gold on the COMEX today decreased to 1205.00 dollars per ounce.