Gold Prices Extend Rebound As U.S. Dollar Slumps

(RTTNews) - After ending the previous session modestly higher, the price of gold saw further upside over the course of the trading day on Wednesday.

Gold for December delivery climbed $18.60 or 0.7 percent to $2,639.90 after inching up $2.80 or 0.1 percent to $2,621.30 an ounce during Tuesday's session.

The price of the precious metal continued to regain ground following the nosedive seen on Monday but remains well off its recent highs.

Gold prices moved higher amid weakness in the value of the U.S. dollar, with the U.S. dollar index slumping by 0.98 points or 0.9 percent to 106.03.

The increase by the price of gold also came as the Commerce Department released closely watched consumer price inflation data that matched expectations.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in October, matching the uptick seen in September as well as economist estimates.

The annual rate of growth by the PCE price index accelerated to 2.3 percent in October from 2.1 percent in September, which was also in line with expectations.

Excluding food and energy prices, the core PCE price index climbed by 0.3 percent in October, matching the increase seen in September as well as economist estimates.

The annual rate of growth by the core PCE price index crept up to 2.8 percent in October from 2.7 percent in September, which was also in line with expectations.

Following the release of the Federal Reserve's preferred inflation readings, CME Group's FedWatch Tool is indicating a 70.0 percent chance the central bank will lower interest rates by 25 basis points next month.