Gold gains on weaker dollar, reduced Fed rate-hike bets
GLD•Other precious metals also gain
Among other metals, spot silver XAG= rose 1.8% to $65.82 per ounce. Platinum XPT= gained 0.7% to $1,759.69, while palladium XPD= climbed 1.7% to $1,334.77.
Gold rises as dollar weakens and rate-hike bets ease
Gold drifted higher on Monday, supported by a weaker dollar and recent soft economic data that reduced expectations for a U.S. interest rate hike next month.
Spot gold XAU= rose 0.6% to $4,400.15 per ounce by 0710 GMT. Prices hit a more-than-two-month high last week.
U.S. gold futures GCcv1 for December delivery edged 0.4% higher to $4,456.50.
The U.S. dollar index .DXY was down 0.2%, making greenback-priced metals more affordable for other currency holders.
"Gold has taken the ball and run with it to start the week, with soft inflation numbers keeping the U.S. dollar under pressure and giving gold extra headroom to push towards the $4,400 level," said Tim Waterer, chief market analyst at KCM Trade.
"A sustained move above $4,500 would likely need additional dollar weakness or a clearer pullback in energy prices."
Fed meeting minutes and geopolitical developments in focus
An unexpected decline in U.S. nonfarm payrolls in July, coupled with data showing only mild consumer price inflation, has reduced expectations that the U.S. Federal Reserve will raise interest rates next month.
Traders are now pricing in a 29% chance of a September rate hike, down from 47% a month earlier, CME's FedWatch Tool showed.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion, enhancing its appeal to investors.
