The dollar was on track for a weekly drop, making gold less expensive for buyers holding other currencies, while the 10-year Treasury yield also fell.
In the international markets, both gold and silver were trading higher at USD 1,984 per ounce and USD 23.86 per ounce, respectively.
Spot gold rose 1.1% to $1,981.39 per ounce by 10:11 a.m. ET (1511 GMT). U.S. gold futures up over 1% to $1,984.60.
Following the CPI data, the dollar fell to an over two-month low and benchmark U.S. 10-year Treasury yields fell to their lowest level since Sept. 22.
Despite being a traditional hedge against inflation, higher interest rates raise the opportunity cost for holding bullion.
Gold buying on Dhanteras 2023: Even though gold investments can yield sizable short-term returns, it's crucial to think about the investment's long-term return. Gold investments in Dhanteras are intriguing for individuals who have a long-term investment strategy.
The industry does not foresee customers flocking to jewellers this year during the normally busy and auspicious time of Dhanteras and Diwali, but the high price could mean that revenue figures are not badly affected.
Spot gold is now, trading below five-month highs which it hit last week. U.S. gold futures continued to be steady at $1,986.70.
Dussehra is considered to be an auspicious time to buy gold. The Middle East conflict and the US interest rate direction have been driving the prices of gold in recent times. However, gold ETF holdings worldwide are at a 3-year low. This suggests that investors aren’t buying gold enough.
Investors should consider parameters depending on their objectives, risk, return, liquidity, and tax benefits before choosing the most appropriate option to invest in gold this Dussehra.
Spot gold was flat at $1,981.14 per ounce by 0910 GMT, and U.S. gold futures eased 0.1% to $1,992.80.
Spot gold increased 1.4% to $1,949.89 per ounce by 9:26 a.m. ET (1326 GMT), its highest since Sept. 1. U.S. gold futures jumped 1.4% to $1,962.80.
Spot gold was up 0.3% at $1,873.25 per ounce by 0343 GMT. U.S. gold futures added 0.2% to $1,885.80.
Spot gold was 0.3% lower at $1,814.39 per ounce by 9:01 a.m. EDT (1301) GMT and was on track for its second straight week of decline, down 1.7% so far this week.
Dollar hitting a 10-month high and a possible announcement from the US Federal Reserve resulted in a dip in the prices of gold
Spot gold was down 0.7% by 1137 GMT to $1,835.40 per ounce, its lowest since March 10. U.S. gold futures slipped 0.7% to $1,852.40.
Spot gold rose 0.6% to $1,876.45 per ounce by 9:26 a.m. EDT (1326 GMT). U.S. gold futures gained 0.8% to $1,893.50.
Spot gold prices hit a low of $1,900.49 an ounce, hovering near the lowest price since August 23
Spot gold was down 0.1% to $1,923.94 per ounce by 1153 GMT, while U.S. gold futures also fell 0.1% to $1,943.70.
Spot gold was up 0.3% at $1,925.50 per ounce, as of 1152 GMT, following three sessions of losses. U.S. gold futures rose 0.4% to $1,946.20.
Spot gold was up 0.6% at $1,942.19 per ounce at 2:41 p.m. EDT (1841 GMT) after rising as much as 0.9% earlier in the session. U.S. gold futures settled 0.7% higher at $1,967.10.
Gold prices are down 0.3% so far in September due to a strong dollar which makes the precious metal more expensive for holders of other currencies.
It's that time of the year when the Gold demand starts to pick up during the Ganesh Chaturthi festival, which marks the beginning of the festival and wedding season in India. The Jewelry industry in the past quarter has been increasing the number of stores. If you bought gold last year on Ganesh Chaturthi or the year before you are sitting on strong gains. Watch to know more!
Making gold more expensive for other currency holders, the dollar gained 0.4% to a more than three-month high after data showed China's services activity expanded at the slowest pace in eight months in August.
The Fed is likely done raising interest rates, traders bet on Friday after a jump in the U.S. unemployment rate and moderate wage growth suggested that labour market conditions were easing.