Gold Gains on Weaker Dollar and Fading Rate Hike Expectations

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 by 1032 GMT. Prices hit a more-than-two-month high last week.

The U.S. dollar index (.DXY) 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.'