WASHINGTON (dpa-AFX) - Gold prices were modestly higher in thin trade on Monday as a benign U.S. inflation reading helped revive investor hopes for further policy easing by the Federal Reserve in 2025.
Spot gold rose 0.3 percent to $2,29.65 in European trade while U.S. gold futures were little changed at $2,643.69.
The dollar fell from its two-year high peak hit last week and Treasury yields eased after a report from the U.S. Commerce Department on Friday showed moderate monthly price increases and the smallest gain in underlying inflation in six months.
Data showed PCE Inflation, the Fed's preferred reading on consumer price inflation, has increased 0.1 percent month-on-month in November versus expectations of a 0.2 percent increase.
The annual rate rose to 2.4 percent from 2.3 percent in the previous month but was still below the 2.5 percent anticipated by markets.
The core PCE eased to 0.1 percent from 0.3 percent in October and the yearly rate held steady at 2.8 percent.
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