Investing.com - Gold prices trimmed gains on Thursday, as a string of upbeat U.S. economic reports lent some support to a weakened dollar, although caution ahead of Friday's U.S. inflation data was expected to limit the greenback's gains.
Comex gold futures were up $5.71 or about 0.44% at $1,294.71 a troy ounce by 09:00 a.m. ET (13:00 GMT), after rising to a two-week peak of $1,299.85 earlier in the day.
The greenback strengthened after the U.S. Department of Labor reported on Thursday that initial jobless claims fell more than expected to 243,000 last week.
A separate report showed that producer prices increased 0.4% in September, in line with expectations. Core producer prices, which exclude food and energy also rose 0.4%, beating expectations for a 0.2% uptick.
Several policymakers believe additional tightening will depend on upcoming inflation data. However, most Fed members said they feel another rate increase this year "was likely to be warranted," the report showed.
Market participants were now looking ahead to the highly-anticipated U.S. consumer price inflation data set to be released on Friday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.22% at 92.96, a two-week trough of 92.64 hit earlier in the day.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, silver futures gained 0.34% to $17.19 a troy ounce.
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