Gold Prices Rise to $4,377 per Ounce Amid Weaker US Dollar and Rate Hike Uncertainty

Gold prices rose for the second consecutive week to $4,377 per ounce, driven by a weaker US dollar and declining expectations of a US interest rate hike. According to Kuwait-based Dar Al-Sabaik Company, weak US economic indicators, including a 0.6% decline in retail sales and lower inflation data, reduced the likelihood of tighter monetary policy.

The probability of a September rate hike fell to around 31%, down from approximately 55% a week earlier. The decline was positive for gold as lower interest rates reduce the opportunity cost of holding the non-yielding precious metal.

Investors are closely watching the minutes of the Federal Reserve meeting, which included three dissenting votes and could offer important clues about the future path of interest rates and monetary policy. Markets are also awaiting the minutes of the European Central Bank meeting, alongside a broad range of US economic indicators.