Investing.com - Gold prices fell in early Asia on Thursday as investors took note of a stronger dollar and weak holiday demand.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at $1,242.00 a troy ounce, down 0.28%, after hitting an overnight session low of $1,241.70 and off a high of $1,250.20.

Overnight, gold prices fell after a solid U.S. inflation report confirmed market sentiments for the Federal Reserve to close its bond-buying program this month and hike interest rates next year, which fueled demand for the dollar.

The Labor Department reported earlier that U.S. consumer price index rose 0.1% in September, meeting estimates and following a 0.2% decline in August, which sent investors flocking to the greenback.

Year-over-year, consumer prices rose 1.7% in September, beating expectations for a 1.6% reading.

Core consumer prices, which exclude food and energy costs, rose 0.1% in September, disappointing expectations for a 0.2% gain. Core consumer prices were flat in August, though the overall report confirmed market expectations for the Federal Reserve to make monetary policy less accommodating going forward.

Prices didn't plummet, however, as expectations for the European Central Bank to loosen policy bolstered the commodity's safe-haven appeal.

Silver futures for December delivery fell 0.25% at $17.188 a troy ounce. Copper futures for December delivery rose 0.05% at $3.017 a pound.