NEW YORK: Gold prices climbed on Thursday as the dollar eased, while investors positioned themselves ahead of key US inflation data and the Federal Reserve’s policy meeting due next week.

Spot gold was up 0.3% at $1,791.28 per ounce, as of 1523 GMT, after rising more than 1% on Wednesday. US gold futures rose 0.3% to $1,803.20.

The dollar index slipped 0.2% against its rivals, making gold less expensive for other currency holders.

“We’re just waiting for some fresh fundamental inputs,” said Jim Wyckoff, senior analyst at Kitco Metals, adding that gold prices are likely to be in “choppy and sideways” trade leading up to the Fed’s policy meeting next week.

Investors are keeping a close eye on the Fed policy decision due on Dec. 14, with market participants largely pricing in a 50-basis-point (bps) rate hike. November’s consumer price data due on Dec. 13 will also be closely watched. “What traders are going to watch is not only whether the Fed raises (interest rates) by half a point or three-quarters of a point, but also the tenor of their rhetoric on the pace of future rate hikes,” Wyckoff said.

However, recent strong US economic data has led to fears that the Fed may lift interest rates more than recently projected.