Gold prices held near one-month high on Thursday as the U.S. dollar edged down against major peers and U.S. 10-year Treasury yields eased, making gold cheaper for buyers in other currencies.
Spot gold rose 0.3 percent to $1,798.77 per ounce, after having earlier hit its highest since Sept. 15 at $1,797.31. U.S. gold futures were up 0.3 percent at $1,799.80.
Both the dollar and benchmark U.S. 10-year Treasury yields were subdued as investors reckoned on inflation bringing forward rate hikes around the world.
Longer-dated Treasury yields fell even after U.S. inflation data that showed prices rose solidly in September, advancing expectations for Federal Reserve tightening.
The FOMC minutes from the Fed's September policy meeting signaled that the Federal Reserve will announce a plan to taper asset purchases in either mid-November or mid-December.
Chinese inflation data for September proved to be a mixed bag, with consumer price inflation softening last month while factory-gate inflation soared to the highest level in almost 26 years, boosted by soaring prices of raw materials.
A Labor Department report on producer price inflation in the month of September may attract attention later today along with the weekly jobless claims report.