Gold Prices Rise on Weaker Dollar and Slowing US Economy
Gold prices rose in Asian trade on Monday as a weaker US dollar and softer economic data reduced expectations of a Federal Reserve interest-rate hike next month.
The spot price of gold increased by 0.3% to $4,388.62 an ounce, while US gold futures for December delivery gained 0.2% to $4,444.30.
The dollar index slipped 0.1%, making gold and other dollar-priced commodities cheaper for holders of other currencies.
Recent economic data has pointed to softer US economic conditions, with an unexpected fall in nonfarm payrolls in July and only modest consumer price inflation last week.
This has weakened the case for another rate increase by the Fed at its September meeting, with markets now pricing in a 33% probability of a hike compared to 47% a month earlier.