Gold rose on the U.S. inflation data and concerns over the situation in China. China's central bank injected more liquidity into the financial sector to calm market participants.

The U.S. consumer price inflation rose 0.1% in July, missing expectations for a 0.2% increase, after a 0.3% gain in June.

The increase was partly driven by higher gasoline and food prices. Gasoline prices climbed 0.9% in July, while food prices increased 0.2% in July.

On a yearly basis, the U.S. consumer price index increased to 0.2% in July from 0.1% in June, in line with expectations.

The U.S. consumer price inflation excluding food and energy gained 0.1% in July, missing expectations for a 0.2% rise, after a 0.2% increase in June.

On a yearly basis, the U.S. consumer price index excluding food and energy remained unchanged to 1.8% in July.

Market participants are awaiting the release of the latest Fed's monetary policy minutes. The Fed will release its minutes at 18:00 GMT. Market participants will be looking for signs if the Fed will start raising its interest rate in September.

October futures for gold on the COMEX today increased to 1128.70 dollars per ounce.