Gold rises as the dollar retreats and ahead of U.S. inflation data

Gold prices rose on Wednesday, supported by a slight decline in the dollar, as investors awaited the repercussions of renewed hostilities between the United States and Iran, alongside expected U.S. inflation data that could offer clues about the outlook for interest rates.

Spot gold rose 0.4% to $4,372.19 per ounce by 02:30 GMT, while U.S. December gold futures fell 0.5% to $4,416 per ounce.

Markets are awaiting the release of the U.S. Producer Price Index on Thursday, followed by the Consumer Price Index on Friday, amid keen interest in assessing the trajectory of U.S. monetary policy.

Although gold is widely viewed as a hedge against inflation, rising interest rates reduce the appeal of the non-yielding precious metal.

Among other precious metals, spot silver rose 0.4% to $66 per ounce, platinum gained 1% to $1,831.76, while palladium fell 0.3% to $1,344.69.