Gold prices fell 1% to a two-month low on Tuesday, as a stronger-than-expected U.S. inflation report tempered prospects of an early interest rate cut from the Federal Reserve.

Spot gold was down 0.9% at $2,002.29 an ounce by 9:28 a.m. ET (1428 GMT), after hitting its lowest since Dec. 13 earlier in the session. U.S. gold futures fell 0.9% to $2,015.30.

Data showed U.S. consumer prices increased more than expected in January amid an increase in the costs of shelter and healthcare.

Gold takes pause in light trading; eyes on Fed in data-packed week

“That was not the report that the market wanted to see,” said Tai Wong, a New York-based independent metals analyst.

“Fed doves are looking for shelter today as surprisingly stubborn inflation has dropped the chances of a May rate under 50% for the moment,” Wong added.

Fed policymakers will probably wait until June before cutting interest rates, traders bet after the U.S. CPI data. Higher interest rates increase the opportunity cost of holding bullion.

Following the inflation data, the dollar jumped 0.5% to a three-month high against its rivals, making gold more expensive for holders of other currencies. The U.S. 10-year Treasury yield also rose.

Gold has found some complacency above the $2,000 level, but there are various data points coming this week that could put additional pressure on the market, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.

Investors will now focus on retail sales data on Thursday and producer price index (PPI) numbers on Friday. The market will also listen to comments from a slew of Fed officials this week.

Several U.S. Fed officials, including Chairman Jerome Powell, said last week they want to see more evidence inflation will continue to decline before cutting rates.

Elsewhere, spot platinum was down 0.9% at $880.72 an ounce, palladium fell 2% to $873.88 and silver lost 1.6% at $22.32.