Gold is rising from its lowest level in a month as dollar and bonds fall

Gold prices rose on Wednesday from a one-month low hit in the previous session as the dollar and bond yields fell, a day before US consumer price data could provide clues about the path to raising interest rates.

And by 0644 GMT, spot gold rose 0.3 percent to $ 1930.37 an ounce, after falling to its lowest level since the tenth of July at $ 1922 an ounce on Tuesday. US gold futures rose 0.2 percent to $1,964.50 an ounce.

Data earlier showed that China’s consumer price index contracted in July, with the world’s second-largest economy finding it difficult to revive demand, as well as increasing pressure on authorities to take additional direct stimulus measures.

Gold, which is usually seen as a hedge against economic risks, received support from renewed concerns about the world’s largest economy after Moody’s downgraded the credit rating of several US banks.

As a result, long-term US Treasury yields fell, making gold more attractive. The dollar index also remained far from Tuesday’s high, down 0.2 percent.

As for other precious metals, spot silver rose 0.7 percent to $22.91 an ounce. Platinum rose 0.7 percent to $906.46 an ounce. Palladium rose 0.5 percent to $1,226.03 an ounce.