Gold rises 2% as dollar drops

Gold prices rose on Wednesday, as the US dollar fell against most of its peers, ahead of the Federal Reserve meeting minutes.

Data showed today that the US consumer price index rose 0.4% during September, beating forecasts of 0.3%.

The core consumer price index reading (excluding energy and food prices) rose 0.2% last month as expected.

The Federal Reserve will release later the minutes of its last meeting, during which the central bank hinted the possibility of starting taper the bond-buying program soon.

The dollar index fell against a basket of major currencies by 0.5% to 94.07 points as of 17:54 GMT, after hitting a high of 94.5 points and a low of 94.05 points.

Gold spot prices rose by 2% to $1,792.6 an ounce as of 17:54 GMT.