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2024.01.1109:09:00UTC+00Gold Rises As Dollar Softens Ahead Of US Inflation Data

Gold inched higher on Thursday and the dollar weakened as investors awaited key inflation data for direction.

Spot gold rose 0.3 percent to $2,030.87 per ounce while U.S. gold futures were up 0.4 percent at $2,035.45.

The U.S. Labour Department's reports on consumer and producer price inflation, due to be released today and tomorrow, could have a significant impact on the outlook for interest rates.

The reports may show slowdowns in the annual rate of core price growth and could bolster optimism about near-term rate cuts by the Federal Reserve.

CME Group's FedWatch Tool currently indicates a 64.5 percent chance the Fed will cut rates by a quarter point at its March meeting.

U.S. weekly jobless claims data and the U.S. Fed's budget statement for the month December will also be in focus in the New York session.

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