Gold edges higher on softer dollar as rate-hike expectations ease
FUNDAMENTALS
Spot gold was up 0.3% at $4,388.62 per ounce, as of 0028 GMT, while U.S. gold futures for December delivery edged 0.2% higher to $4,444.30.
The U.S. dollar index was down 0.1%, making greenback-priced metals more affordable for other currency holders.
An unexpected decline in U.S. nonfarm payrolls in July, coupled with data released last week showing only mild consumer price inflation, has reduced expectations that the U.S. Federal Reserve will raise interest rates next month.
Markets are pricing in a 33% chance of a September rate hike, down from 47% a month ago, CME’s FedWatch Tool showed.
Non-yielding gold tends to perform well in a low-interest-rate environment. Spot gold posted a weekly gain on Friday.
The Fed’s July meeting minutes, due on Wednesday, will be scrutinized for further clues on monetary policy outlook.On the geopolitical front, U.S. President Donald Trump’s envoys met with Egyptian, Qatari and Turkish mediators in Cairo on Sunday, a diplomatic source said, aiming to advance his Gaza peace plan, even as Israel pressed on with airstrikes in the enclave.
Elsewhere, gold discounts in India widened last week to their highest levels in more than two months as a rally in bullion prices curbed consumption, while interest in China remained muted despite continued purchases by the central bank.
In other metals, spot silver rose 0.8% to $65.19 per ounce. Platinum increased 0.4% to $1,755.40, while palladium added 1.2% to $1,329.00.
DATA/EVENTS (GMT)
0200 China Urban Investment (YTD) YY July
0200 China Retail Sales YY July
0200 China Unemp Rate Urban Area July
0430 Japan Tertiary Ind Act NSA June
