Gold Edges Higher as Dollar Softens on Hawkish Rate Hike Odds

Gold prices rose slightly on Monday after the US dollar softened and investors trimmed their expectations for a Federal Reserve rate hike in September.

The spot gold price reached $4,388.62 an ounce, while December US gold futures added 0.2% to $4,444.30.

The support for gold came from a 0.1% decline in the US dollar index, making dollar-priced metals cheaper for buyers using other currencies.

The bigger swing factor is interest-rate expectations, with markets pricing a 33% chance of a September hike, down from 47% a month ago, according to the CME FedWatch Tool.