India, Sept. 30 -- Gold prices rose on Wednesday after US inflation data came in softer than expected. The cooler inflation reading weakened the US dollar and increased hopes that the Federal Reserve may not raise interest rates again as soon as October.

Spot gold gained 0.7% to $4,209.71 per ounce as of 9:05 am ET (1305 GMT). Despite Wednesday's rise, gold prices were still down 5.4% so far in September. US gold futures also moved higher. Gold futures gained 1.5% to $4,241.90 on Wednesday.

The main trigger for the gold move was the latest US inflation data. The Personal Consumption Expenditures (PCE) Price Index, a key inflation measure watched by the Federal Reserve, rose 0.3% in August after a downwardly revised 0.1% increase in July...