Gold prices rise as dollar falls ahead of US inflation data

Gold prices rose on Thursday, supported by the decline in the dollar, but they are moving within a relatively narrow range amid caution ahead of the release of US inflation data that may affect future Federal Reserve decisions on raising interest rates.

Spot gold rose 0.3 percent to $1,710.62 an ounce by 0521 GMT. Meanwhile, US gold futures settled at $1713.70.

The dollar index fell 0.3 percent. A falling US currency makes dollar-priced gold more attractive to holders of other currencies.

The US Consumer Price Index report for October is due at 1330 GMT. Experts expect the core inflation rate to decline on a monthly and annual basis.