09:24 AM EDT, 10/11/2024 (MT Newswires) -- Gold prices rose early on Friday after another U.S. inflation measure eased last month.

Gold for December delivery was last seen up US$20.20 to US$2,659.50 per ounce.

The U.S. Bureau of Labor Statistics reported the Producer Price Index (PPI) rose 1.8% annualized in September, down from a 1.9% pace a month earlier and matching expectations, according to Marketwatch. Core PPI, excluding volatile items, rose 0.1% from the prior month, under expectations for a 0.2% monthly rise.

The data is unlikely to sway market expectations for a 25 basis points cut to U.S. interest rates when the Federal Reserve's policy committee meets next month. The prospect of lower rates is supporting gold, since it cuts the carrying cost of owning the metal, which pays no interest.

The dollar was steady following the data, with the ICE dollar index last seen down 0.01 points to 102.98.

Treasury yields rose, with the U.S. two-year note last seen up 1.5 basis points to 3.976%, while the yield on the 10-year note was up 4.5 points to 4.11%.