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Gold inched higher on Thursday, helped by a softer dollar, while market participants awaited key U.S. inflation data that could shape the Federal Reserve's interest-rate path.
Spot gold was up 0.3% at $4,412.84 per ounce, as of 0234 GMT. U.S. gold futures for December delivery fell 0.1% to $4,457.10.
"For now, the geopolitical developments in the Persian Gulf are of secondary importance to gold. Gold instead is teeing off on a weaker dollar, which notably is not moving up despite the fact that U.S. rates are going higher," Marex analyst Edward Meir said.
The U.S. dollar remained subdued, making dollar-priced metals less expensive for holders of other currencies.
The U.S. producer price index data is due at 1230 GMT, and consumer inflation figures are scheduled for release on Friday.
The Fed will hold its interest rate steady at its September 15-16 meeting and for the rest of this year, again defying market expectations for a series of hikes, according to a majority of economists in a Reuters poll.
The CME FedWatch Tool showed markets pricing in a 60% chance of a U.S. rate increase this month. Higher rates generally make non-yielding assets less attractive to investors.
Gold is supported "as U.S. fiscal pressures continue to undermine confidence in the long-term value of government debt and the currency used to finance it," Daniel Hynes, senior commodities strategist at ANZ, said in a note.
Last month, total U.S. debt topped $40 trillion for the first time, drawing fresh warnings that a fiscal crisis is brewing.
On the geopolitical front, Iran said on Wednesday it had attacked 10 ships near the Strait of Hormuz after the U.S. sank five Iranian oil tankers, in the biggest wave of attacks on shipping by both sides since the start of the six-month-old war.
Among other metals, spot silver rose 0.2% to $67.42 per ounce, platinum fell 0.6% to $1,885.02 and palladium gained 0.2% to $1,355.50.
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