Ammon News - Gold prices rose on Thursday, bolstered by rising tensions in the Middle East and a weaker dollar, while softer-than-expected U.S. inflation data boosted expectations of Federal Reserve rate cuts.

Spot gold was up 0.7% at $3,375.06 an ounce, as of 0343 GMT. U.S. gold futures gained 1.5% to $3,395.

The U.S. dollar index fell to a near two-month low, making greenback-priced bullion more attractive to overseas buyers.

The weakness in the dollar index serves as a strong catalyst, said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA, adding that a "bullish breakout" of the $3,346 resistance triggered technical buying.

Rising geopolitical risks aided safe-haven assets, with President Donald Trump announcing on Wednesday that U.S. personnel were being moved out of the Middle East due to heightened security risks amid rising tensions with Iran.

Traders now expect 50 basis points of rate cut by year-end.

Elsewhere, spot silver was up 0.4% at $36.38 per ounce, platinum rose 1.3% to $1,272.50, still hovering near a more than 4-year high, while palladium was down 1% at $1,068.92. Reuters