Gold prices rose well after US CPI data

Lower-than-expected inflation data sent the US dollar index to a new low in more than two months, making gold cheaper for holders of other currencies. The 10-year US Treasury yield fell to a nearly two-month low

According to the Chicago Mercantile Exchange's FedWatch tool, U.S. interest rate futures on Tuesday put the probability of a rate cut next May at 65%, compared with 34% late Monday.

In the 12 months through October, the CPI rose 3.2% and 3.7% in September, respectively. Economists interviewed had previously forecast that the CPI would rise 0.1% month-on-month. and 3.3% YoY.

Gold prices held firm on Wednesday after rising 0.9% the previous day, with spot gold now trading around $1,965.50 an ounce, as data showed inflation in the US slowing, strengthening view that the Federal Reserve may not raise interest rates anymore