Gold prices edged higher at the start of Asian trading on Monday, supported by a weaker U.S. dollar and recent economic data that curbed expectations of a U.S. interest rate hike next month.
Spot gold rose 0.3% to $4,388.62 per ounce by 00:28 GMT, while U.S. gold futures for December delivery gained 0.2% to $4,444.30 per ounce.
The U.S. dollar index fell 0.1%, making dollar-denominated gold cheaper for holders of other currencies.
An unexpected decline in U.S. nonfarm payrolls in July, together with data released last week showing only modest consumer price inflation, also reduced expectations that the Federal Reserve would raise interest rates next month.
According to CME’s FedWatch Tool, markets are pricing in a 33% probability of a rate hike in September, down from 47% a month earlier.
Gold, which does not generate interest income, tends to benefit from an environment of lower interest rates. Spot gold also posted a weekly gain on Friday.
Among other precious metals, spot silver rose 0.8% to $65.19 per ounce. Platinum gained 0.4% to $1,755.40, while palladium rose 1.2% to $1,329.
Reuters
