COMEX gold is advancing towards a two-week high in early Asian trades on Wednesday as dollar index eased back below 100 mark on increased hopes of a Federal rate cut after US macro data released on Tuesday pointed to signs of cooling inflation. The latest figures from the Bureau of Labor Statistics showed on Tuesday that the US Producer Prices Index rose 2.7% in September from a year earlier, slightly above the 2.6% previous and broadly in line with expectations. Without food and energy, the core gauge was up 2.9% over the year compared to the 2.7% forecast and the 2.8% increase recorded in August. Meanwhile, retail sales rose 0.2% on a monthly basis in September below estimates for a 0.4% growth and following a 0.6% increase in August. Moreover, several Fed officials backed the case for a third rate cut this year in December, dragging the greenback lower. The yellow metal is currently quoting at $4201.00 an ounce up half a percent on the day.

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