June gold futures last traded at $1,321.30 an ounce, up 0.62% on the day. The drop in yields helped boost stock prices ahead of the cash market opening. Other data on Thursday showed new applications for unemployment benefits holding near more than a 48-year low last week.
Fed officials have in recent days signalled they would not be too concerned if inflation overshot the central bank's target, reiterating a message in a statement issued at the end of a two-day policy meeting last Wednesday.
The Producer Price Index (PPI) for final demand rose just 0.1 percent in April, the U.S. Bureau of Labor Statistics reported Wednesday. The CPI had slipped 0.1 per cent in March.
Excluding the volatile food and energy categories, producer prices advanced 0.2% in April, matching economists' expectations. This put annual CPI 2.1 percent higher from a year ago, below the 2.2 percent estimate.
Core CPI, which excludes food and energy, came in 0.1 percent higher, missing the 0.2 percent forecast.
Economists expect the core PCE price index, which had increased 1.6 per cent in February, to breach its target in May. He added that if economic growth remains strong the US central bank is on target to raise interest rates in June, despite the weak inflation data, .
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The lawmakers also planned to ask the police chief questions around the ongoing face-off between the police and one of their colleagues, Dino Melaye.
The energy index increased 1.4% in April after a 2.8% decline in March.
US PRODUCER prices barely rose in April after strong gains in the first quarter, held down by a moderation in the cost of both goods and services, which could ease fears that inflation pressures were rapidly building up. The dollar added to losses against a basket of currencies. Intermediate services prices advanced 3.1% in April from a year earlier. Economists also expect oil prices to surge after President Donald Trump on Tuesday pulled the United States out of an global nuclear deal with Iran.
U.S. consumer prices rose by less than forecast in April as costs for automobiles and airfares declined, reducing chances that inflation will run significantly above the Federal Reserve's target in coming months.
But health care costs nudged up 0.1 per cent after advancing 0.4 per cent in March, helping to restrain the increase in the core CPI. Owners-equivalent rent, one of the categories created to track rental prices, advanced 0.3%.
Prices for final demand services inched up 0.1 percent in the fourth straight rise. Prices for household furniture increased 0.5 per cent last month, the largest rise since April 2015.