Gold Edges Higher as Fed Hike Bets Fade Amid Weaker Jobs Data

Gold prices have inched higher on Monday after reaching a seven-week high in the previous session. The metal's gains come as weak US jobs data has tempered expectations for Federal Reserve rate hikes, with traders now pricing a 44% chance of a rate hike in September.

The disappointing US nonfarm payrolls data released last week led to a reduction in expectations of further Fed rate hikes. As a result, the attractiveness of gold against income-generating assets has increased, as bullion earns no interest.

Investors are now awaiting US consumer price data due on Wednesday and producer price data on Thursday for further clues on the Fed's interest-rate outlook. A lower headline figure in the July consumer price index could reduce expectations of a Fed rate increase before the end of the year, weakening the dollar and creating upside potential for gold.

Spot gold was up 0.1% at $4,345.09 per ounce, while US gold futures rose 0.1% to $4,404.80 on Monday. Spot silver rose 0.9% to $64.14 per ounce, while platinum fell 0.4% to $1,737.42, and palladium lost 1.2% to $1,360.75.