Gold price rises on a weaker U.S. dollar

Gold price increased on a weaker U.S. dollar. The U.S. dollar declined on the latest Fed's minutes. The minutes added to the speculation that the Fed may not raise its interest rates this year. FOMC members noted that the U.S. labour market continued to improve, while the inflation remained at low levels.

"After assessing the outlook for economic activity, the labour market, and inflation and weighing the uncertainties associated with the outlook, all but one member concluded that, although the U.S. economy had strengthened and labour underutilization had diminished, economic conditions did not warrant an increase in the target range for the federal funds rate at this meeting," the minutes said.

But Atlanta Fed President Dennis Lockhart reiterated on Friday that the interest rate hike by the Fed this year is still possible.

"I see a lift-off decision later this year at the October or December FOMC meetings as likely appropriate," he said.

Market participants eyed the U.S. import price index. According to the U.S. Labor Department's data on Friday, the U.S. import price index fell by 0.1% in September, beating expectations for a 0.5% decrease, after a 1.6% decline in August. August's figure was revised down from a 1.8% drop.

The decline was mainly driven by lower prices on foods, capital goods and nonfuel industrial supplies.

A stronger U.S. currency lowers the price of imported goods.

December futures for gold on the COMEX today rose to 1157.00 dollars per ounce.