Gold prices extended gains on Thursday after traders added to bets that the Federal Reserve will deliver an interest-rate cut next month following the latest US economic data, reports Reuters.
Spot gold was up 0.4 per cent at $2,617.15 per ounce as of 1345 GMT on track to snap a six-session losing streak. US gold futures edged 0.4 per cent higher to $2,635.00.
US consumer prices rose slightly more than expected in September, but the annual increase in inflation was the smallest in more than 3-1/2 years. Another report showed that weekly jobless claims rose to 258,000 for the week ending Oct. 5, versus estimates of 230,000.
"The CPI report didn't bring much of a surprise and the jobs numbers show a trend of weakening, which puts the notion that the track to cut rates, helping gold. Last few days, saw cooling in gold's rally, so it is in a good position to go back up," said Alex Ebkarian, chief operating officer at Allegiance Gold.
Markets now see an 88 per cent likelihood of a 25-basis-point cut from the Fed next month versus 76 per cent before the data, according to the CME FedWatch tool.
Zero-yield bullion is a preferred investment amid lower interest rates.
Investors' focus will shift to U.S. Producer Price Index data on Friday for additional insights on rate cuts.
Heightened geopolitical events and strong demand led by central banks are the other positive catalysts for gold, Ebkarian added.
In the Middle East, Israel pressed its assault on Hezbollah and told Lebanese civilians not to return to homes in the south.
Spot silver rose 0.4 per cent to $30.62 per ounce.
Platinum added 1.2 per cent to $955.95, and palladium added 0.2 per cent to $1,042.00.
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