Gold price increased on a weaker U.S. dollar. But gains were limited as the uncertainty over the Fed's interest rate hike continue to weigh on gold. It remains unclear if the Fed will start raising its interest rate in September or not.

The weak Chinese economic data supported gold price. The Chinese producer price index (PPI) dropped 5.9% in August, missing forecasts of a 5.5% fall, after a 5.4% decline in July. It was the biggest decline since 2009.

October futures for gold on the COMEX today increased to 1108.60 dollars per ounce.