Gold prices climb 1.1% globally as dollar weakens, US inflation slows

Gold prices rose globally on Thursday, supported by a weaker dollar and inflation data that matched market expectations. This prompted investors to scale back bets on further US monetary tightening, following comments from US Federal Reserve Chair Kevin Warsh, who offered no clear signals on the future path of interest rates or inflation, according to Reuters.

As of 14:03 GMT, spot gold was up 1.1% at $4,109.94 per ounce, while US gold futures for August delivery rose 1.9% to $4,108.30 per ounce.

The gains coincided with a 0.9% drop in the dollar against major currencies, supported by a stronger Japanese yen amid speculation that Japanese authorities may intervene to support their currency. A weaker dollar typically makes gold more attractive to investors holding other currencies.

Prices were little changed after US Commerce Department data showed the personal consumption expenditures index fell by 0.1% in June, in line with analysts' expectations. However, experts caution that this decline may be temporary, given concerns about rising oil prices due to renewed tensions in the Middle East.

The Federal Reserve decided on Wednesday to keep interest rates unchanged. Chair Kevin Warsh reaffirmed the bank's commitment to curbing inflation, leaving markets uncertain about the next steps in monetary policy.

According to CME Group's FedWatch tool, market expectations for a rate hike at the September meeting fell to 57%, down from about 77% before the Fed's announcement.

Among other precious metals, silver rose 1.5% to $58.52 per ounce, platinum gained 1.9% to $1,641.78, and palladium jumped 3.8% to $1,294.50 per ounce.