Gold prices fell on Wednesday after a strong rally in the previous session, as concerns related to inflation and uncertainty over the path of U.S. interest rates escalated, amid rising oil prices that cast a shadow over the yellow metal, which yields no return.

Spot gold fell 0.5% to $4035.67 per ounce, while U.S. gold futures for August delivery declined 0.7% to $4042.20.

Gold had jumped more than 2% in Tuesday's session to $4100.49 per ounce, recovering from two-week lows, after data showed U.S. consumer inflation slowed more than expected in June, driven by a decline in energy prices.

Among other precious metals, spot silver fell 0.3% to $58.48 per ounce, while platinum rose 0.2% to $1635.56, and palladium gained 0.2% to $1307.11.