WASHINGTON (dpa-AFX) - Gold prices climbed on Thursday as positive inflation data from Spain and Germany boosted bets on an ECB rate cut next month.
Hopes for a Fed rate cut also underpinned sentiment after another Federal Reserve official said the time has come for the U.S. central bank to cut interest rates.
Spot gold jumped 0.8 percent to $2,521.05 per ounce, while U.S. gold futures were up 0.7 percent at 2,555.05.
The greenback rose slightly, and the euro slipped after data showed Spanish inflation eased to its lowest level in a year.
Elsewhere, preliminary data showed inflation fell in six important German states in August, boosting bets on an ECB rate cut next month.
German bond yields fell ahead of the release of flash inflation data from Germany, U.S. weekly jobless claims figures and revisions to U.S. GDP figures due later in the day.
The release of the U.S. Core PCE Price Index along with the Euro Area inflation on Friday could impact expectations for how quickly the central banks cut rates.
Economists currently expect the annual rate of U.S. consumer price growth to inch up to 2.6 percent in July from 2.5 percent in June.
The annual rate of core consumer price is expected to tick up to 2.7 percent in July from 2.6 percent in June.
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