Gold Prices Climb Amid Reduced Rate Hike Expectations

Gold prices rose on Thursday as softer-than-expected US inflation data reduced bets for a Federal Reserve rate hike in October.

The spot price of gold increased by 0.6% to $4,181.02 per ounce at 08:56 a.m. EDT (12:56 GMT), while US gold futures for December delivery were up 0.6% at $4,211.20.

The reduced likelihood of an October rate hike, now priced in at 37%, is supporting the precious metals markets, according to David Meger, director of metals trading at High Ridge Futures.

However, limiting further gains in bullion are 10-year US Treasury yields scaling their highest level in more than two decades and a stronger dollar making greenback-priced bullion more expensive for holders of other currencies.