09:29 AM EDT, 10/10/2024 (MT Newswires) -- Gold prices rose early on Thursday following four losing sessions as the dollar weakened after the United States reported inflation cooled last month, though not as much as expected.

Gold for December delivery was last seen up US$17.20 to US$2,643.20 per ounce.

The Bureau of Labor Statistics reported the Consumer Pries Index (CPI) rose by 2.4% last month, down from 2.5% in August, but above the consensus estimate for a 2.3% reading, according to Marketwatch. Core CPI, which excludes volatile food and energy, rose 3.3% annualized, up from 3.2% in August and expectations for a 3.2% rise.

The higher than expected rise further rules out another 50 basis point cut to U.S. interest rates when the Federal Reserve's policy committee meets next month but may not convince the central bank to pause on lowering rates.

BMO Economics said the bottom line is that today's CPI report is "not what the Fed wanted to see after its bold move in September" and virtually rules out another large cut in November. "While we still lean toward a quarter-point reduction, much will depend on whether we see a second straight strong jobs report in October, it added.

The dollar fell following the release, with the ICE dollar index last seen down 0.15 points to 102.78.

Treasury yields were mixed, with the U.S. two-year note last seen paying 3.98%, down 5.0 basis points, while the yield on the 10-year note was up 1.4 points to 4.083%