Gold price rises due to a weaker U.S. dollar

Gold price increased due to a weaker U.S. dollar. The greenback declined against other currencies after the release of the weak U.S. consumer price inflation data. The U.S. consumer price inflation fell 0.1% in August, missing expectations for a flat reading, after a 0.1% gain in July.

The decrease was partly driven by lower gasoline prices. Gasoline prices dropped 4.1% in August. It was the biggest decline since January.

Food prices increased 0.2% in August.

On a yearly basis, the U.S. consumer price index remained unchanged at 0.2% in August, in line with expectations.

The U.S. consumer price inflation excluding food and energy gained 0.1% in August, in line with expectations, after a 0.1% increase in July.

On a yearly basis, the U.S. consumer price index excluding food and energy remained unchanged at 1.8% in August, missing expectations for a rise to 1.9%.

The inflation remains low due to a weak wage growth and a stronger U.S. dollar.

Market participants are awaiting the release of the Fed's interest rate decision. The Fed's monetary policy meeting will start today. The results are scheduled to be released tomorrow at 18:00 GMT. According to analysts' forecasts, the Fed will not raise its interest rate in September due to concerns over a slowdown in the global economy and low inflationary expectations in the U.S.

October futures for gold on the COMEX today rise to 1119.70 dollars per ounce.