Gold rises on the back of weaker dollar

Gold prices climbed on Thursday, buoyed by a softer dollar, while markets awaited a key US inflation report later in the day that could help gauge the Federal Reserve's policy trajectory this year, reports Reuters.

Spot gold was up 0.5 per cent at $2,033.70 per ounce, as of 1206 GMT. US gold futures also rose 0.6 per cent to $2,038.90.

"Gold remains range-bound ahead of the US CPI print with key support around $2010, while a break above $2045 is needed to offer fresh momentum," said Ole Hansen, Saxo Bank's head of commodity strategy.

The US consumer price inflation (CPI) report is due at 1330 GMT, and will shed further light on when the Fed could start cutting rates. US producer prices will be released on Friday.

A Reuters poll sees year-on-year inflation at 3.2 per cent in December, while core inflation likely fell to 3.8 per cent, its lowest since mid-2021.

Traders are betting on 140 basis points (bps) of interest rate cuts by the US central bank this year and a 69 per cent chance they begin as soon as March, according to LSEG's interest rate probability app, IRPR.