Gold closes slightly higher as dollar turns lower

Gold prices rose on Thursday, as the US dollar held against most of its peers, despite the release of strong economic data.

The US Department of Labor revealed that the number of initial unemployment claims was at 376K last week from 385K, while analysts forecast 370K.

The US consumer price index rose by 0.6% in May, the largest monthly increase in 13 years, higher than forecasts of 0.4%. 

The core reading (excluding food and fuel prices) rose by 0.7%, higher than forecasts of 0.5%. 

The dollar index fell against a basket of major currencies by less than 0.1% to 90.07 points as of 18:42 GMT, after hitting a high of 90.3 points and a low of 89.9 points.

Gold August futures rose 0.1 or 90 cents, and closed at $1,896.4 an ounce.