Gold Prices Surge on Weaker Dollar and Reduced Rate Hike Expectations

Gold prices have risen to $4,397 on Monday, driven by a weaker US dollar and recent economic data that dampens expectations of an interest rate hike next month.

The unexpected drop in US nonfarm payrolls for July, along with modest consumer price inflation data, has reduced the likelihood of a September rate hike to 30%, down from 47% a month earlier, according to CME's FedWatch Tool.

This decrease in interest rates makes it easier for investors to hold non-yielding bullion, boosting its attractiveness. Markets are now looking ahead to the minutes of the Federal Reserve's July meeting on Wednesday for further signals on the central bank's monetary policy direction.