Gold price declines on a stronger U.S. dollar

Gold price declined on a stronger U.S. dollar. The greenback rose on the better-than-expected U.S. economic data. The U.S. consumer price inflation rose 0.3% in June, in line with expectations, after a 0.4% gain in May.

The increase was partly driven by higher gasoline prices, which climbed 3.4% in June.

On a yearly basis, the U.S. consumer price index increased to 0.1% in June from 0.0% in May, in line with expectations.

The U.S. consumer price inflation excluding food and energy gained 0.2% in June, in line with expectations, after a 0.1% rise in May.

On a yearly basis, the U.S. consumer price index excluding food and energy remained rose to 1.8% in June from 1.7% in May, in line with expectations.

Food prices increased 0.3% in June, the largest rise since September 2014.

Increasing inflation could support the Fed's decision to start raising interest rates this year.

Housing starts in the U.S. rose 9.8% to 1,174 million annualized rate in June from a 1,069 million pace in May, missing expectations for a rise to 1.110 million. May's figure was revised up from 1,036 million units.

The increase was driven by an increase in starts of multi-family homes.

Building permits in the U.S. climbed 7.4% to 1.343 million annualized rate in June from a 1.250 million pace in May. May's figure was revised down from 1.275 million. It was the highest level since July 2007.

Analysts had expected building permits to decline to 1.150 million units.

August futures for gold on the COMEX today declined to 1132.70 dollars per ounce.