Gold shines as US dollar declines before CPI

Gold prices moved in a narrow range on Thursday as investors exercise caution ahead of inflation data in the United States that could affect the size of the next interest rate hike by the Federal Reserve.

And gold fell in spot transactions 0.2 percent to $ 1668.84 an ounce by 0420 GMT. US gold futures fell 0.1 percent to $1,675.50.

Although gold is traditionally considered a means of hedge against inflation, the high interest rates to combat inflation reduce the attractiveness of the precious metal because it does not generate a fixed return.

US CPI data is due at 1230 GMT. It is expected to record 8.1 percent on an annual basis in September, which could boost expectations for another rate hike by the Federal Reserve.

Spot silver fell 0.5% to $18.96 an ounce, while platinum rose 0.2% to $881.63 and palladium 0.1% to $2,138.43.