Gold Edges Higher as Weaker Dollar Outweighs Geopolitical Tensions

Gold prices rose slightly on Thursday as the US dollar weakened, but market participants are keeping a close eye on key inflation data that could influence the Federal Reserve's interest-rate path.

The spot gold price was up 0.3% at $4,412.84 per ounce as of 0234 GMT, while US gold futures for December delivery fell 0.1% to $4,457.10.

Marex analyst Edward Meir said the dollar's weakness is currently driving gold prices, rather than geopolitical tensions in the Persian Gulf.

The US producer price index data is due at 1230 GMT on Thursday, and consumer inflation figures are scheduled for release on Friday.

Analysts expect the Fed to keep interest rates steady at its September 15-16 meeting, despite market expectations of a series of hikes.