Gold Rises as Concerns Recede Over US Federal Reserve Subsidy Cut

Gold prices rose, as concerns about an early cut in economic support eased after data revealed that consumer price inflation in the United States cooled in July, sending the dollar lower.

And gold rose in immediate transactions 0.1% to $ 1753.90 an ounce in Asian trading, after recording its largest percentage gain since May 6 on Wednesday.

US gold futures rose 0.2% to $1,756.30.

Data on Wednesday showed that US consumer price increases slowed in July, but remained at a 13-year high on an annual basis.

Meanwhile, a growing number of US Federal Reserve officials are looking at how and when they should start cutting back on massive asset purchases in the pandemic era.

Gold is considered a hedge against inflation. But the yellow metal is highly vulnerable to rising US interest rates, which increase the opportunity cost of holding non-yielding gold while boosting the dollar.

At the same time, the dollar index consolidated below its highest level in more than four months, which it reached on Wednesday.

As for other precious metals, silver fell 0.5% to $23.41 an ounce. Platinum fell 0.4 percent to $1013.23 and palladium rose 0.1 percent to $2639.56.