Gold Climbs as October Fed Rate Hike Odds Dim

Gold prices edged up on Monday as market expectations for a Federal Reserve rate hike in October diminished. Recent weaker economic data reduced the likelihood of such a move, making non-yielding assets like gold more attractive to investors.

Spot gold climbed 0.4% to $4,158.17 per ounce by 0150 GMT, while US gold futures for December delivery gained 0.6%, reaching $4,186.40.

The shift in market sentiment followed softer economic indicators, which lowered the prospects of a Fed rate increase next month. Gold, which does not offer a yield, typically benefits from such expectations as investors seek safer assets.