Gold Soars as Weaker Dollar Dents Rate Hike Bets

Gold prices rose nearly 0.9% on Friday as the US Dollar weakened across the board, driven by softer inflation and sales data that decreased chances of a rate hike by the Federal Reserve in September.

The US Dollar Index (DXY) fell 0.4% to 99.57, with investors trimming Fed-hawkish bets ahead of the meeting.

July's producer and consumer inflation data eased, and Initial Jobless Claims rose modestly, while Retail Sales declined 0.6%, missing estimates for a 0.1% expansion.

The lack of headlines about the Middle East provided another leg up for Gold, with US Treasury Secretary Scott Bessent commenting on measures to pressure Iran, though Oil prices failed to rally sharply.