Gold Rises on Weaker Dollar and Lower Rate-Hike Expectations

Gold prices rose in early Asian trade on Monday as the US dollar softened and expectations of a September interest rate hike by the Federal Reserve decreased.

The spot price of gold increased by 0.3% to $4,388.62 per ounce, while US gold futures for December delivery edged up 0.2% to $4,444.30.

The decline in rate-hike expectations was driven by recent economic data, including a surprise drop in July's nonfarm payrolls and mild consumer price inflation, which reduced the likelihood of a September rate hike from 47% to 33%, according to CME's FedWatch Tool.

Gold tends to perform well in low interest rate environments, making it more attractive to investors as a safe-haven asset. The metal also saw a weekly gain on Friday, and its price may be influenced by the upcoming release of the Fed's July meeting minutes on Wednesday.