Gold hits over 1-month peak

Gold prices rose on Thursday, hitting an over one-month high, as the dollar softened while investors hunkered down for Friday's US inflation data for cues on the Federal Reserve's policy path, reports Reuters.
Spot gold was up 0.3 per cent at $3,407.81 per ounce at 1222 GMT, after hitting $3,408.62, its highest level since July 23, earlier in the session.
US December gold futures rose 0.5 per cent to $3,466.30.
The dollar index was down 0.3 per cent against a currency basket, making gold more attractive for holders of other currencies.
Investors are awaiting Friday's release of the Personal Consumption Expenditures (PCE) Price Index, which is the Fed's preferred inflation measure. Economists polled by Reuters expect the index to rise 2.6 per cent in July, matching the June figure.
"A surprise to the upside would likely strengthen the dollar and increase Treasury yields, weighing on gold prices," said Ricardo Evangelista, senior analyst at ActivTrades.
"The opposite outcome could fuel expectations of a more dovish Fed, softening the dollar and supporting the precious metal."
Markets expect a more than 87 per cent chance of a 25-basis-point rate cut at the Fed's policy meeting next month, according to CME FedWatch Tool.