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By Bloomberg

The dollar strengthened and Treasuries erased gains after an inflation gauge rose and durable goods orders increased. European stocks advanced with metals on stimulus speculation.

The Bloomberg Dollar Spot Index climbed 0.5 percent at 9:15 a.m. in New York and the yield on 10-year Treasuries added less than one basis point to 1.98 percent. Standard & Poor’s 500 Index futures slipped 0.1 percent and the Stoxx Europe 600 Index gained 0.5 percent. Gold increased 0.7 percent and copper headed for its biggest monthly advance in 2 1/2 years. U.K. gas futures rose for a third day as a fuel-payment dispute between Russia and Ukraine worsened.

While the consumer-price index fell in January, the so- called core measure, which excludes volatile food and fuel, rose 0.2 percent, more than projected. Orders for durable goods rose for the first time in three months, another report showed. U.S. stocks and bonds rallied this week after Federal Reserve Chair Janet Yellen told lawmakers that inflation and wage growth remain too low for the central bank to raise rates at its next meeting.

The dollar gained against all but three of its 16 major counterparts, climbing 0.9 percent versus the euro and 0.2 percent per yen.

The U.S. consumer-price index declined 0.7 percent in January after dropping 0.3 percent the prior month, Labor Department data showed. The median forecast of economists surveyed by Bloomberg called for a 0.6 percent decrease.

Bookings for goods meant to last at least three years increased 2.8 percent after a revised 3.7 percent decrease the prior month, data from the Commerce Department showed Thursday in Washington. Non-military capital goods orders excluding aircraft rose 0.6 percent after a 0.7 percent decrease in December.

Gold extended a rally from a seven-week low as Chinese buyers returned from the Lunar New Year holidays and investors assessed the outlook for the Federal Reserve raising interest rates.

Bullion for immediate delivery rose to $1,218.64 an ounce, according to Bloomberg generic pricing. Spot platinum climbed 1.5 percent and palladium advanced 0.6 percent.

Copper rose 2 percent, taking its February gain to 7.8 percent. Zinc climbed 1.8 percent and aluminum was up 1.7 percent.