Gold Rises on Softer Dollar and Lower Oil Prices

Gold prices have been on an upward trend for three consecutive sessions, driven by a softer dollar and lower oil prices. Spot gold has risen 1.3% to $4,127.04 per ounce as of 0253 GMT, while U.S. gold futures rose 0.8% to $4,184.40.

The decline in the value of the dollar is making greenback-priced metals more attractive to holders of other currencies, which is contributing to the increase in gold prices. Lower oil prices are also easing inflation concerns that often lead to expectations of higher interest rates.

Despite the recent gains, traders are still uncertain about the direction of interest rates, with a 59% probability of a Federal Reserve rate hike at its September 15-16 meeting, down from 67% the previous day. Analysts at TD Securities expect gold to remain range-bound near current levels.