Weaker Dollar and Fading Fed Hike Expectations Lift Gold Prices

Gold prices rose on Monday as a weaker dollar and fading expectations of a U.S. Federal Reserve rate hike next month supported bullion.

Spot gold increased by 0.5% to $4,398.58 per ounce, while U.S. gold futures for December delivery edged 0.4% higher to $4,455.50.

The U.S. dollar index was down 0.2%, making gold cheaper for buyers holding other currencies.

Ole Hansen, head of commodity strategy at Saxo Bank, said softer inflation, employment, and consumer data are reducing the risk of another rate hike, strengthening the case that the Fed's next meaningful move may ultimately be a cut.