Gold Surges Above $4,400 as Fed Hike Expectations Fizzle

Gold prices have risen above $4,400 as expectations of a Federal Reserve interest rate hike in September fade. The US Dollar Index has declined to its lowest level since June 5, while the FedWatch tool shows markets now see a 70% chance that the central bank will keep rates unchanged next month.

Disappointing US economic releases, including a decline in nonfarm payrolls and retail sales, have contributed to the shift in expectations. The change has led to a positive near-term bias for gold, but buyers appear reluctant to push prices sharply higher.

The Strait of Hormuz remains a key concern, with tensions between the US and Iran contributing to elevated oil prices and energy-driven inflation risks. The Fed's policy path is expected to become clearer on Wednesday when the minutes of the July FOMC meeting are released.