Gold Edges Higher as Dollar Weakens and Rate Hike Expectations Fade

Gold prices rose on Monday as the US dollar weakened and expectations of an interest rate hike by the Federal Reserve decreased.

The spot price of gold increased by 0.3% to $4,388.62 per ounce, while U.S. gold futures for December delivery gained 0.2% to $4,444.30, according to Reuters.

The US dollar index slipped 0.1%, making dollar-denominated gold less expensive for buyers holding other currencies.

The decline in interest rate hike expectations was driven by weaker-than-expected US nonfarm payrolls in July and modest consumer price increases, which reduced the likelihood of a September rate hike to 33% from 47% a month ago, according to CME's FedWatch tool.