Gold gains on weaker dollar, fading Fed rate hike bets
GLD•Other precious metals rise
Among other metals, spot silver XAG= rose 1% to $65.31 per ounce. Platinum XPT= gained 0.8% to $1,762.43 per ounce while palladium XPD= climbed 1% to $1,326.26 per ounce.
Gold edges higher as dollar weakens
Gold prices edged higher on Monday, supported by a weaker dollar and fading expectations of a U.S. Federal Reserve rate hike, while investors continued to monitor geopolitical tensions in the Middle East.
Spot gold XAU= was up 0.28% to $4,387.95 per ounce by 09:25 a.m. EDT (1325 GMT). U.S. gold futures GCcv1 for December delivery edged 0.2% higher to $4,444.40.
The gold market appears to be pricing in a stagflationary environment, with softer employment and expectations that the Fed will tolerate current inflation levels, said Bart Melek, global head of commodity strategy at TD Securities.
"A big factor here is the US dollar has weakened to a psychologically important 100 level."
The dollar fell to its lowest level in more than two months, making gold cheaper for buyers holding other currencies.
Fed outlook and geopolitics remain in focus
Markets pared bets on a Federal Reserve rate hike after last week's weaker-than-expected U.S. payrolls report and subdued consumer inflation data.
Investors are now awaiting minutes from the Fed's July meeting, due on Wednesday, for clues on the central bank's policy outlook.
