Gold Edges Higher on Weaker Dollar, Easing Rate Hike Expectations

Gold prices inched higher on Monday as the US dollar softened and expectations of a September rate hike eased.

The spot price of gold rose 0.3% to $4,388.62 per ounce, while US gold futures for December delivery increased 0.2% to $4,444.30.

The decline in the dollar index by 0.1% made greenback-priced metals more affordable for other currency holders.

A recent dip in US nonfarm payrolls and mild consumer price inflation have reduced expectations of a rate hike next month, with markets now pricing in a 33% chance of a September increase, down from 47% last month, according to CME's FedWatch Tool.