Gold Rises on Weaker Dollar as Rate-Hike Odds Fall

Gold prices rose on Friday, buoyed by a weaker US dollar and in-line inflation data that suggests the Federal Reserve will hold interest rates steady next month.

The spot price of gold was up 0.7% at $4,379.95 per ounce by 1:40 p.m. EDT, with prices declining 1.3% in the previous session due to profit-taking after reaching their highest level since June 5.

Analyst Jim Wyckoff attributed the rise in gold to a lower US dollar index, which slipped 0.3%, making greenback-priced bullion more affordable for buyers overseas.

The inflation data, while largely in line with expectations, significantly lowered expectations of an interest rate increase next month, with most analysts now seeing the central bank holding the current 3.50% to 3.75% range.