The rate of inflation rose in October and moved further away from the Federal Reserve’s 2% goal, confirming a recent uptick in prices that could cajole the central bank into cutting interest rates less aggressively.

Gold prices edged lower on Thursday as the U.S. dollar strengthened, while investors assessed a flurry of economic data showing stubbornly strong U.S. inflation, suggesting the Federal Reserve might tread cautiously on further interest rate cuts.

Gold registered its deepest one-day decline in more than five months on Monday, and hit its lowest since Nov. 18 in the previous session, as safe-haven demand for the metal softened

The Federal Reserve cut interest rates by 50 basis points in September and followed up with another reduction of a quarter percentage point in November. Steve Sosnick, Interactive Brokers chief strategist,

"Unemployment is going to come down, growth is going to come up, inflation is going to come up," Deutsche Bank's chief US economist said.

Chicago Federal Reserve President Austan Goolsbee said the neutral rate is "well below" where it is right now, and policymakers can cut further so long as the economy does not overheat.

Inflation edged higher in October as the Federal Reserve is looking for clues on how much it should lower interest rates, the Commerce Department reported Wednesday.