Gold Hits Two-Week High on Weaker Dollar and Rate Hike Uncertainty

Gold prices rose for the second consecutive week, reaching $4,377 per ounce, as a weaker US dollar and declining expectations of a US interest rate hike boosted the metal's value.

The Federal Reserve's September meeting now sees a 31% chance of a rate hike, down from 55% a week earlier, due to disappointing US economic indicators. Retail sales fell 0.6% in July, contrary to market forecasts for a 0.1% increase. Inflation data also showed easing price pressures.

Gold's advance was further supported by the decline of the US dollar and lower US Treasury yields, which reduced the opportunity cost of holding gold. Central banks continued to purchase gold, with China adding approximately 20 tons to its reserves in July.