Investing.com - Gold futures rose for the fifth straight session on Thursday to hit a four-month high, after disappointing U.S. economic data fueled bets that the Federal Reserve will hold off on raising interest rates until 2016.
Gold for December delivery on the Comex division of the New York Mercantile Exchange inched up $3.30, or 0.28%, to trade at $1,183.10 a troy ounce during European morning hours.
A day earlier, gold rallied to $1,189.90, the highest level since June 22, before ending at $1,179.80, up $14.40, or 1.24%.
Gold rallied while the dollar sagged on Wednesday after data showed U.S. retail sales barely rose last month, while producer prices posted their biggest decline in 8 months.
The disappointing data fanned hopes that Fed officials could delay raising interest rates until the first half of 2016.
A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, declined 0.1% to 93.91 early Thursday, a level not seen since August 26.
Investors were looking ahead to U.S. economic reports on inflation and weekly jobless claims later in the day for further clues as to the future path of interest rates.
Elsewhere in metals trading, copper for December delivery on the Comex division of the New York Mercantile Exchange tacked on 0.4 cents, or 0.18%, to hit $2.420 a pound during morning hours in London.
Copper rose amid speculation policymakers in China will have to introduce further stimulus measures to boost growth after a recent batch of weak economic data added to concerns over the health of the world's second largest economy.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.