Gold Shows Modest Move To The Upside Amid Lower Dollar

(RTTNews) - Gold prices moved modestly higher during trading on Thursday, extending the recovery from the steep drop seen on Monday.

After climbing $15.60 or 0.9 percent to $1,798 an ounce in the previous session, gold for February delivery inched up $3.50 or 0.2 percent to $1,801.50 an ounce.

The uptick by the price of gold comes amid a modest decrease by the value of the U.S. dollar, with the U.S. dollar index slipping by 0.3 percent to 104.77.

The dollar has moved lower ahead of highly anticipated reports on producer and consumer price inflation due on Friday and next Tuesday, respectively.

The Federal Reserve is widely expected to raise interest rates by 50 basis points next week, but the data could impact the outlook for future rate hikes.

"Gold looks like it will find a home around the $1,800 level until we have better indications with the path of prices," said Edward Moya, senior market analyst at OANDA. "Key resistance remains the $1,830 level with decent support at the $1,750 region."

While the producer price inflation data is likely to be in the spotlight on Friday, traders are also likely to keep an eye on readings on consumer sentiment and inflation expectations.