Gold Rallies on Weak US Data and Lower Rate Hike Expectations

Gold prices surged at the start of the trading week, benefiting from weaker-than-expected US economic data and reduced expectations of a Federal Reserve interest rate hike in October. This renewed investor interest in gold, which, despite not offering any yield, is considered a safe-haven asset during economic uncertainty.

Spot gold climbed 0.4% to $4,158.17 per ounce, while US gold futures for December delivery rose 0.6% to $4,186.40 per ounce. Analysts note that US interest rate expectations heavily influence global gold prices, and recent economic indicators pointing to weakness have boosted demand for the precious metal.

Other precious metals also saw gains. Spot silver increased by 1.7% to $61.40 per ounce. Platinum and palladium each gained 0.6%, reaching $1,708.48 per ounce and $1,175.04 per ounce, respectively.