Gold Gains Amid Weakening US Dollar and Lower Rate Hike Bets

The US Dollar (DXY) fell by 0.4% to 99.57, leading to a rise in gold prices by nearly 0.9%. The weak US data released last week decreased the chances of a rate hike by the Federal Reserve (Fed), which is now seen as having a 31% probability.

The Retail Sales dropped 0.6% in July, missing estimates for a 0.1% expansion. Additionally, the University of Michigan Consumer Sentiment deteriorated from 55.2 to 51.0 in August's preliminary reading.

The drop in US yields is also supporting gold prices. The US 10-year Treasury yield rose by 3.5 basis points to 4.684%. The XAU/USD price trades at $4,386, still below the $4,400 threshold.