Bullion rose as much as 0.7% to trade at $2,647.25 an ounce, building on gains made in the previous session that came after mixed US economic data. Separate US reports on Thursday showed underlying inflation rose more than forecast in September, while applications for unemployment benefits last week increased to a more than one-year high.

Gold prices recovered slightly on Thursday to snap a six-session losing streak, while traders remain focused on a key U.S. inflation reading for insights on a potential rate reduction by the Federal Reserve this year.

Wall Street opened lower on Thursday as hotter-than-expected September inflation data reinforced expectations of a 25-basis-point rate hike by the Federal Reserve at its upcoming meeting. The closely watched Consumer Price Index rose 0.

Wall Street's main indexes closed lower on Thursday as investors looked to higher-than-expected inflation and unemployment claims for indications on the health of the U.S. economy and the path for interest rates.