Gold reverses higher as dollar dips after weak data

Gold prices rose on Thursday as the dollar index declined against most major rivals following data.

The Federal Reserve remains cautious about amending interest rates, with a laser focus on bringing inflation towards 2%, while US consumer prices data for April are awaited next week. 

According to the Fedwatch tool, there’s a 91.3% chance the Federal Reserve will maintain interest rates unchanged at the June meeting, and a 66.9% chance of no change in the July meeting, and a 49.7% chance of no change in September. 

Earlier US data showed unemployment claims rose by 22 thousand to 231 thousand last week, the highest since August.

Otherwise, the dollar index fell 0.3% to 105.2 as of 20:29 GMT, with a session-high at 105.7, and a low at 105.2. 

On trading, gold spot prices rose 1%, or $22 as of 20:30 GMT to $2344.3 an ounce.