Investing.com – Gold prices moved higher on Friday, as sentiment on the greenback remained vulnerable ahead of highly-anticipated data on U.S. inflation due later in the day.
Comex gold futures were up $2.55 or about 0.20% at $1,299.05 a troy ounce by 03:15 a.m. ET (07:15 GMT), just off a two-and-a-half week high of $1,300.73 hit overnight.
The greenback was boosted 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.
But the U.S. dollar weakened ahead of the highly-anticipated U.S. consumer price inflation data set to be released later Friday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 92.91, not far from the previous session’s two-week trough of 92.64.
Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less 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 0.30% to $17.32 a troy ounce.