Nov 10 (Reuters) - Gold prices fell nearly 3% on Tuesday after hotter-than-expected US inflation data lifted the dollar and Treasury yields while reinforcing expectations of a bigger interest rate hike from the Federal Reserve this year.
Spot gold was down 2.7% at $4,028.39 per ounce by 1:53 p.m. ET (1854 GMT). US gold futures for December delivery settled 2.0% lower at $4,030.20 per ounce.
"I think it's a bit of a short-term negative for gold because the inflation numbers were running a little higher than expected," said Edward Meir, an analyst at Marex.
The US Consumer Price Index rose 0.4% last month after advancing 0.6% in September, the Labor Department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast a 0.3% month-on-month rise.
Bets on a 50-basis-point Fed rate hike in December started to build after the inflation print and comments by Fed governor Christopher Waller, who said he would support more aggressive action in the event of a too-hot Consumer Price Index report.