Gold Prices Rise Amid Softer Dollar and Lower Oil

Gold prices continued their upward trend on Wednesday, extending gains for a third consecutive session. The precious metal's value rose by 1.3% to $4,127.04 per ounce, while US gold futures increased by 0.8% to $4,184.40.

The softer dollar and lower oil prices contributed to the increase in gold prices. The US dollar remained subdued, making greenback-priced metals more attractive to holders of other currencies. Oil steadied after steep falls in the previous two sessions, which can ease inflation concerns that often lead to expectations of higher interest rates.

Kelvin Wong, a senior market analyst at OANDA, noted that gold's relation with oil is still intact and that lower oil prices could move gold prices higher. However, traders are now pricing in a 59% probability of a Federal Reserve interest rate hike at the central bank's September 15-16 meeting, down from 67% a day earlier.