Gold Prices Rise Amid Weaker Dollar and Slumping Rate Hike Expectations

Gold prices rose by 0.68% to ₹154,506 as a weaker US dollar and lower expectations of a Federal Reserve rate hike supported the metal's advance.

The US Consumer Price Index (CPI) inflation eased to 3.4% year-on-year in July from 3.5% in June, marking the second consecutive month of cooling annual inflation.

This has reduced expectations of tighter monetary policy, with markets now pricing a 31% probability of a September rate hike, down sharply from around 55% last week.

However, Chicago Fed President Austan Goolsbee highlighted persistent inflation concerns, potentially limiting gold's upside.