Gold prices rose on Thursday, to continue recovery from a 5-month low for the second straight day, as the US dollar fell against its peers, after data showed a slowdown in the US inflation rate.

Gold prices rose 0.4% to $1,758.13 an ounce, after opening at $1,751.27, and hit a high at $1,748.90.

Gold closed higher by 1.3% yesterday, the first gain in 5 days, in recovery from a 5-month low of $1,683.67 an ounce.

The dollar index fell 0.1% today, to head for the the second straight loss against a majority of rivals, and pulled back from a 4-month low of 93.19 points which lifts demand for dollar-denominated metal prices. 

The greenback is falling due to disappointing data, which showed a slowdown in the US inflation rate during July.

The data reduced the inflationary pressures on the US Federal Reserve, and increased the odds of the central bank to start tightening monetary policy in the near term.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since May 5 at 1,023.54 metric tonnes.

USD/JPY tilted lower in Asian trade off July 7 highs for the second straight session following earlier Japanese data and ahead of US data later today. 

As of 07:53 GMT, USD/JPY rose 0.04% to 110.39, with an intraday high at 110.32. 

From Japan, producer prices rose 1.1% in July compared to a 0.6% increase in June, while rising 5.6% on a yearly basis, compared to a 5% rise in June. 

From the US, producer prices are expected up 0.6% in July, slowing down from 1% in June, while core prices are expected up 0.5%, slowing down from 1%. 

US unemployment claims are expected down 10 thousand to 375 thousand, while continuing claims are expected down 40 thousand to 2.88 million. 

The main US stock benchmarks closed higher on Wednesday, following the release of mixed economic data, with Dow Jones and S&P 500 posted new closing levels.

The Senate yesterday passed the $1 trillion infrastructure spending bill as it was widely expected.

The US consumer price index rose by 0.5% in July, in line with forecasts. 

The core reading (excluding food and fuel prices) rose by 0.3%, lower than forecasts of 0.4%.

To the oil market, WTI crude September futures rose 1.4% or 96 cents, and closed at $69.25 a barrel.

Brent October futures rose 1.1% or 81 cents, and closed at $71.44 a barrel.

As for stocks, Dow Jones rose 0.6% or 220 points, and closed at 35,484, with a day high of 35,501, and a low of 35,300.

S&P 500 rose 0.2% or 11 points to 4,447, after hitting a high of 4,449 and a low of 4,436.

Nasdaq fell 0.1% or 23 points to 14,765, with a high of 14,842 and a low of 14,692.

Oil prices rose on Wednesday, after a drop in the US crude inventories, while the US dollar fell against its peers.

The Energy Information Administration reported today that the US crude inventories fell 400K barrels to 438.8 barrels during the past week, while analysts forecast a drop by 600K million barrels.

While the American Petroleum Institute reported yesterday in preliminary data that the US crude inventories fell 816K barrels during the same period.

The dollar index fell against a basket of major currencies by 0.2% to 92.8 points as of 17:20 GMT, after hitting a high of 93.1 points and a low of 92.8 points.

As of 17:17  GMT, WTI crude September futures rose 1% to $69.01 a barrel.

Brent October futures rose 0.8% to $71.2 a barrel.