Gold prices rose in Asian trading on Thursday, remaining close to record highs as softer-than-expected U.S. consumer inflation data boosted expectations that the Federal Reserve will reduce interest rates in September.

- The yellow metal received support from a decrease in improved risk appetite, while the monthly rise in consumer price index inflation led traders to prepare for a smaller rate cut in September.

- Spot gold rose by 0.2% to $2,452.56 per ounce, while gold futures rose by 0.4% to $2,490.40 per ounce.

- Spot gold prices approached a record level exceeding $2,480 this week, with safe-haven demand also supported by escalating geopolitical tensions in the Middle East.

- However, gold initially reacted negatively to the consumer price index data on Wednesday, as a monthly increase in inflation led to growing expectations of a 25 basis point rate cut by the Federal Reserve in September, according to the CME Fedwatch tool. Traders are divided between a 25 basis point and a 50 basis point cut.

- The prospect of lower interest rates is positive for gold, as it reduces the opportunity cost of investing in the yellow metal. This kept gold close to recent peaks, along with losses in the dollar and Treasury yields.

- On the other hand, other precious metals also rose on Thursday. Platinum futures increased by 0.5% to $935.65 per ounce, while silver futures rose by 1.6% to $27.773 per ounce.

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