Gold prices hovered near their lowest levels in a month on Thursday, as investors awaited inflation data from the United States that could determine the Federal Reserve's course regarding interest rates in the coming period. Gold rose 0.2 percent in spot transactions to $1918 per ounce at 03:37 GMT, but remained close to its lowest level since July 10, which it hit on Wednesday. Meanwhile, U.S. gold futures stabilized at $1950.80.
The U.S. consumer price index data, set to be released at 12:30 GMT, is expected to show a slight acceleration in inflation for July. Gold is often seen as a hedge against inflation; however, rising interest rates increase the opportunity cost of holding non-yielding bullion.
As for other precious metals, silver showed little change in spot transactions, holding steady at $22.67 per ounce, while platinum rose 0.3 percent to $890.87, and palladium increased 0.3 percent to $1238.63.
