Gold Prices Soar on Soft Dollar and Weaker Employment Data

Gold prices rose by 0.73% to settle at 154,882 after a softer dollar following U.S. inflation data that matched expectations and reinforced the likelihood of no interest rate hike in September.

The U.S. consumer inflation rose 0.1% in July, in line with estimates, while weaker employment data reduced expectations for a near-term rate hike. Physical demand remained mixed across major Asian markets.

In India, gold discounts widened to as much as $47 an ounce from $44 last week due to cautious retail buyers after prices reached a more than one-month high. Chinese premiums moderated to $3-$5 an ounce from $5-$8.