Gold Price Surge Continues as Rate Hike Odds Tumble

A weaker US retail sales report and easing inflation have reduced expectations for another Federal Reserve rate hike, supporting gold prices. The spot gold price rose to $4,395 during Asian trading on Monday.

The softer US retail sales data weakened the U.S. dollar and Treasury yields, pushing the price of gold higher. Markets now expect only a 33.1% chance of a September rate hike.

Gold must break above $4,500 to target the $5,000 area, according to analysts. A break below $4,300 will likely push the gold price further toward $4,200.

Silver has also shown signs of strength, but concerns about a decline in economic activity may limit its rally. Silver must clear $72 to open the way toward $90.