US Inflation Data Damps Fed Rate Hike Expectations, Gold Prices Rise

Gold prices rose on Thursday following softer-than-expected US inflation data. The data released on Sept. 30 showed that US inflation rose less than expected in August, and the previous month's figures were revised lower.

This has reduced expectations that the Federal Reserve would raise interest rates at its meeting this month. Markets are now pricing in a 38% chance of an October rate hike, down from 45% before the data was released.

The dollar index, which tracks the US currency against six major peers, rose 0.20% to 101.65 points.