Gold Soars Amid Eased Rate Hike Bets and Weaker Dollar

Gold prices have extended their two-week advance as expectations for further US Federal Reserve rate hikes have eased. This downward pressure on the US dollar has made bullion cheaper for most buyers, driving gold up to its highest level in a while.

The precious metal rose by as much as 1.1% to trade around $4,425 an ounce after ending last week almost 1% higher. The US dollar gauge was at its lowest since May, making bullion priced in the currency cheaper for many buyers.

Swaps are no longer fully pricing in another US interest rate increase before the end of this year, as they were just a week ago. Markets don't believe the Fed is truly hawkish in the near term, according to Justin Lin from Global X ETFs.