Gold Gains Amid Dollar Weakness and Rate Outlook
Gold prices rose slightly at the start of Asian trading due to a decline in the US dollar and reduced expectations of a US interest rate hike next month, following weaker-than-expected economic data, including an unexpected decline in non-farm payrolls in July and a modest increase in consumer prices. Spot gold increased by 0.3% to approximately $4,388.62 per ounce, while December US gold futures rose by 0.2% to $4,444.30, with the dollar index declining by 0.1%. Market expectations for a rate hike have decreased to 33% from 47% a month ago, as gold relies on a low interest rate environment since it is a non-yielding asset. Other precious metals also saw gains: silver rose by 0.8% to $65.19 per ounce, platinum increased by 0.4% to $1,755.40, and palladium went up by 1.2% to $1,329.
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