09:27 AM EDT, 09/12/2024 (MT Newswires) -- Gold prices rose early on Thursday as the dollar weakened ahead of next week's expected Federal Reserve interest-rate cut.

Gold for December delivery was last seen up US$19.70 to US$2,562.10 per ounce.

Hopes among gold bulls that the Federal Reserve's policy committee would offer 50 basis point rate cut at the end of its two-day meeting next Wednesday were dashed when data released yesterday showed the August U.S. Consumer Price Index rose by 2.5% down from 2.9% in July.

"Gold dropped back on Wednesday after US inflation data dimmed the prospects for a 50-basis-point cut next week, but underlying strength prevails, with daily higher lows signaling continued appetite from investors," Saxo Bank noted.

The dollar eased early, with the ICE dollar index last seen down 0.08 points to 101.61.

Treasury yields were flat, with the yield on the U.S. two-year not unchanged at 3.648%, while the 10-year note was paying 3.658%, also steady