Gold prices saw a slight increase in early Asian trading on Monday, supported by a weaker US dollar and receding expectations of an interest rate hike. Spot gold climbed 0.3% to $4388.62 per ounce, while US gold futures for December delivery
rose 0.2% to $4444.30. This movement was backed by a 0.1% decline in the US Dollar Index, which reduced the cost of gold for holders of other currencies. This trend was further bolstered by an unexpected drop in US non-farm payrolls during
July, coupled with last week's data showing only slight inflation in consumer prices, which diminished expectations for the Federal Reserve (US central bank) to raise interest rates next month. According to CME's FedWatch Tool, markets anticipate a 33% chance of an
interest rate hike in September, down from 47% a month prior. Gold, being a non-yielding asset, typically benefits from a low-interest-rate environment and had recorded weekly gains on Friday.
