Gold price declines on a stronger U.S. dollar

Gold price fell on a stronger U.S. dollar. The greenback rose against other currencies after the release of the U.S. consumer price inflation data. The U.S. Labor Department released consumer price inflation data on Thursday. The U.S. consumer price inflation fell 0.2% in September, in line with expectations, after a 0.1% fall in August.

The decrease was partly driven by lower gasoline prices. Gasoline prices dropped 9.0% in September. It was the biggest decline since January.

On a yearly basis, the U.S. consumer price index declined to 0.0% in September from 0.2% in August, beating expectations for a drop to -0.1%.

The U.S. consumer price inflation excluding food and energy gained 0.2% in September, exceeding expectations for a 0.1% rise, after a 0.1% increase in August.

On a yearly basis, the U.S. consumer price index excluding food and energy rose to 1.9% in September from 1.8% in August. Analysts had expected the inflation to remain unchanged at 1.8%.

It is unclear if this mixed inflation data will be enough for the Fed's interest rate hike. Fed Governors Lael Brainard and Daniel Tarullo said this week that they would like to see clear signals that the inflation was accelerating toward the 2% target.

December futures for gold on the COMEX today declined to 1173.90 dollars per ounce.