Gold Rises as Rate-Hike Expectations Ease

Gold prices rose in early Asian trade on Monday, supported by a softer dollar and recent economic data that reduced expectations of a US interest rate hike next month.

The US dollar index fell 0.1%, making gold more affordable for other currency holders. Spot gold increased 0.3% to $4,388.62 per ounce, while US gold futures for December delivery rose 0.2% to $4,444.30.

An unexpected decline in US nonfarm payrolls in July and mild consumer price inflation have reduced expectations of a September rate hike. Markets are now pricing in a 33% chance of a rate hike next month, down from 47% a month ago.