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By Bloomberg

Gold declined from the highest price in more than two weeks after inflation showed signs of stirring in the world’s biggest economy, boosting prospects for an increase in U.S. interest rates. Silver dropped.

Bullion for immediate delivery fell as much as 0.6 percent to $1,186.77 an ounce and was at $1,189.70 at 2:12 p.m. in Singapore, according to Bloomberg generic pricing. The precious metal climbed to $1,195.15 on Tuesday, the highest level since March 6, as prices advanced for a fifth straight day.

While some investors buy gold as an inflation hedge, a pickup in the pace of consumer prices may boost prospects for higher borrowing costs, benefiting the U.S. currency and hurting bullion. The Federal Reserve said last week it wants to be reasonably confident inflation is rising toward its 2 percent goal before tightening. The consumer-price index posted the first gain in four months in February, data showed on Tuesday.

“Even though the Fed’s rate-hiking pace has been slowed substantially, they’re still going to hike,” Wayne Gordon, an analyst at UBS Group AG, said by phone from Singapore. “There is more uncertainty in when the Fed raise rates from here because every meeting is a ’live’ meeting from this point.”

The CPI rose 0.2 percent last month, the Labor Department report showed. Core costs, which exclude food and energy, also gained 0.2 percent, exceeding the median forecast of economists surveyed by Bloomberg. The Bloomberg Dollar Spot Index climbed 0.2 percent on Tuesday, snapping two days of declines.

Chair Janet Yellen signaled last week that the Fed is in no hurry to raise rates after the central bank dropped a pledge to be patient. Vice Chairman Stanley Fischer said on Monday that while higher rates will probably be warranted before the end of the year, it won’t be a smooth upward path.

Gold for April delivery declined 0.2 percent to $1,188.80 an ounce on the Comex. Prices capped a fifth day of gains on Tuesday in the longest run since the period to Jan. 20.

Silver for immediate delivery fell 0.4 percent to $16.8916 an ounce. Spot platinum lost 0.3 percent to $1,138 an ounce, while palladium added 0.1 percent to $765.03 an ounce.