Gold shines as investors focus on US inflation data

Gold prices rose for the third consecutive session on Thursday, as investors focus on US inflation data which released earlier today in search of more indications about the path that the Federal Reserve (the US central bank) will adopt regarding interest rates.

By 07:04 GMT, gold in instant transactions rose 0.4% to $2,381.13 per ounce. US gold futures also rose 0.3% to $2,386.20.

The dollar declined, making the precious metal priced in it more attractive to holders of other currencies.

Investors are awaiting the consumer price index report for June,, and the producer price index report expected tomorrow, Friday, amid expectations that the data will support optimism that the US Central Bank will be able to reduce interest rates this year.

Edward Meir, an analyst at Marks, said that any downward surprise in the CPI report could weaken the dollar and push gold prices to rise to the $2,400 level.