Gold Surges as US Rate Hike Expectations Cool

Gold prices saw an upward trend in early Asian trading on Monday, driven by a shift in investor expectations regarding US interest rate hikes. Softer economic data released over the weekend reduced the likelihood of a Federal Reserve rate increase this month, prompting a rally in the precious metal.

Spot gold prices rose by 0.3%, reaching $4,153.32 per ounce, while US gold futures for December delivery advanced 0.5% to $4,182.40. The rally extended to other precious metals, with spot silver jumping 1% to $60.97 an ounce, platinum gaining 0.4% to $1,705.70, and palladium advancing 0.7% to $1,176.

Analysts attributed the price movements to the easing of expectations for a US rate hike, which typically strengthens the dollar and reduces demand for non-yielding assets like gold. The softer economic data dampened speculation about aggressive monetary policy tightening by the Federal Reserve.