Gold rose on Thursday after a softer-than-expected U.S. inflation report tempered expectations for a Federal Reserve rate hike this month, with markets looking to upcoming jobs data for further policy signals.
Spot gold gained 0.8% to $4,187.43 per ounce by 0625 GMT, starting the month on a positive note after a more than 6% fall in September. U.S. gold futures for December delivery firmed 0.7% to $4,217.50.
Data on Wednesday showed US inflation rose less than expected in August, while price pressures were revised lower for the prior month.
The data reduced expectations of a rate hike in October, with markets pricing in a 36% chance, down from 45% before the release. Traders, however, still see an 89% probability of an increase in December.
Higher interest rates reduce the appeal of gold, which does not pay interest.
Limiting gains for gold, the US dollar drifted higher. A stronger greenback makes dollar-priced metals costlier for holders of other currencies.
Spot silver rose 1.4% to $61.23, platinum climbed 1.2% to $1,727.18 and palladium gained 0.6% to $1,210.75. - Reuters
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