0213 GMT — Gold declines in Asian trade. The precious metal’s current pullback below the $4,600 level is likely to be a natural correction on profit-taking after a strong upward rally, says XS.com’s Rania Gule in an email. While the environment remains supportive for gold on a fundamental basis, the market has become increasingly sensitive to expectations surrounding U.S. monetary policy, she says. “Elevated inflation, combined with continued uncertainty over economic growth, fiscal conditions, and bond markets, is making the Federal Reserve’s task increasingly complicated,” the analyst adds.

A higher interest rate environment typically weighs on nonyielding assets like gold. Spot gold drops 0.6% to $4,426.48 a troy ounce.