Gold Rises as Weaker Dollar Boosts Rate-Hike Bets

The value of gold rose on Monday due to a weaker US dollar and recent soft economic data that reduced expectations for a U.S. interest rate hike next month.

Spot gold increased by 0.4% to $4,391.07 per ounce, while US gold futures for December delivery edged 0.3% higher to $4,448.10.

The US dollar index was down 0.1%, making greenback-priced metals more affordable for other currency holders.

According to Tim Waterer, chief market analyst at KCM Trade, 'Gold has taken the ball and run with it to start the week, with soft inflation numbers keeping the U.S. dollar under pressure and giving gold extra headroom to push towards the $4,400 level.'