Gold climbs above $1,250 as dollar retreats

Gold futures rose in American trade trade as the dollar index fell off November 13 highs for another session, following earlier inflation data from the US today. 

As of 03:27 GMT, gold futures due in February rose 0.27% to $1,250.60 an ounce, while the dollar index fell 0.36% to 97.04 off four-week highs. 

Earlier US data showed consumer prices were unchanged in November as expected, down from October's 0.3% increase. 

Core prices excluding food and energy, rose 0.2% as expected, and also the same as October. 

The US Treasury Department will release data on the budget today, expected to show an increase in the deficit to $193.5 billion from $100.5 billion in October. 

Finally, Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, rose 3.24 tonnes to a total of 763.56 tonnes, after marking the second monthly profit in a row last month.