Gold Edges Higher on Weaker Dollar Ahead of Key Inflation Data

Gold prices edged higher on Thursday as the US dollar weakened, creating an environment more favorable for gold investors. Spot gold rose by 0.3% to $4,412.84 per ounce at 0234 GMT. Meanwhile, US gold futures for December delivery fell 0.1% to $4,457.10.

Marex analyst Edward Meir attributed the rise in gold prices to a softer dollar, saying 'Gold instead is teeing off on a weaker dollar...'

The upcoming US inflation data release is expected to influence the Federal Reserve's interest rate decisions. The producer price index data is due at 1230 GMT, followed by consumer inflation figures on Friday.

Despite the impending inflation data, market expectations for a series of interest rate hikes remain low. A Reuters poll showed that most economists expect the Fed to maintain its current interest rate path throughout the year.