Gold gains on weaker dollar, reduced Fed rate-hike bets

Gold  |  2026-08-17 00:16:53   |   By

The U.S. dollar index was down 0.1%, making greenback-priced metals more affordable for other currency holders. [USD/]

SEATTLE (Scrap Monster): 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 $4,391.07 per ounce by 0248 GMT. Prices hit a more than two-month ​high last week.

U.S. gold futures for December delivery edged 0.3% higher to $4,448.10.

The U.S. dollar index was down 0.1%, making greenback-priced metals more affordable for other currency holders. [USD/]

'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.' [O/R]

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 $65.53 per ounce. Platinum climbed 0.3% ​to $1,752.36, while palladium gained 1.6% to $1,333.35.

Courtesy: www.finance.yahoo.com