Ammon News - Gold ​drifted higher on Monday, supported by a weaker dollar and recent ‌soft economic data that reduced expectations for a U.S. interest rate hike next month.
Spot gold rose 0.4% to $4,391.49 per ounce by 0520 GMT. Prices hit a more-than-two-month high ​last week.

U.S. gold futures for December delivery edged 0.3% higher to $4,448.40.

The U.S. ​dollar index was down 0.2%, making greenback-priced metals more affordable for ⁠other currency holders.

"Gold has taken the ball and run with it ​to start the week, with soft inflation numbers keeping the U.S. dollar under ​pressure and giving gold extra headroom to push towards the $4,400 level," said Tim Waterer, chief market analyst at KCM Trade.

"A sustained move above $4,500 would likely need additional dollar ​weakness or a clearer pullback in energy prices."

An unexpected decline in ​U.S. nonfarm payrolls in July, coupled with data showing only mild consumer price inflation, has reduced ‌expectations ⁠that the U.S. Federal Reserve will raise interest rates next month.

Traders are now pricing in a 30% chance of a September rate hike, down from 47% a month earlier, CME's FedWatch Tool showed.

Lower interest rates reduce ​the opportunity cost ​of holding non-yielding ⁠bullion, enhancing its appeal to investors.

Markets are now awaiting minutes of the Fed's July meeting, due on Wednesday, ​for further clues on policymakers' monetary stance.

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.

Among other metals, spot silver rose 1.4% to $65.57 per ounce. Platinum fell 0.1% to $1,746.43, while palladium gained 1.4% ​to $1,331.10.


Reuters