Gold rose for the third consecutive session on Thursday, supported by the dollar's decline and lower U.S. Treasury yields, as investor expectations for a rate cut in the U.S. increase in September.
Gold recorded an increase of about 0.4% in spot trading, reaching $3368.99 per ounce, while U.S. futures contracts for gold delivered in December increased by 0.3% to $3417.80.
The dollar fell close to its lowest levels in several weeks against other currencies, making gold more attractive to foreign currency holders. U.S. Treasury yields for ten-year bonds also stabilized near their weekly lows.
These movements came after Tuesday's data showed a slight increase in U.S. consumer prices for July, reinforcing the likelihood of the Federal Reserve cutting interest rates at the September 17 meeting. Data from the London Metal Exchange indicates that a rate cut has become almost certain in the eyes of traders.
Gold, which does not yield returns, typically benefits in a low-interest-rate environment.
Other precious metals:
Silver rose by 0.2% to $38.56 per ounce.
Platinum fell by 0.1% to $1338.33.
Palladium recorded a notable increase of 1.3% to $1136.70.