Gold Prices Rise as Dollar Weakens and Rate Hike Fades

Gold prices rose on Monday as the US dollar weakened and expectations of an interest rate hike by the Federal Reserve next month faded.

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

The decline in dollar value made dollar-denominated gold less expensive for buyers holding other currencies, which contributed to the rise in gold prices.

Expectations of a September rate hike by the Federal Reserve have weakened after data showed an unexpected decline in US nonfarm payrolls in July and modest consumer price growth last week.