Gold edges higher to $4,397 on weaker dollar

Gold prices rose on Monday as a weaker US dollar and softer economic readings reduced expectations of another US rate increase next month. Mettis Global reported that spot gold was up 0.48% at $4,396.68 an ounce at 11:26 am PST. Spot silver climbed 1.4% to $65.57 an ounce, while palladium also advanced 1.4% to $1,331.10 per ounce and platinum eased 0.1% to $1,746.43.

Reuters reported that an unexpected fall in US nonfarm payrolls for July, together with consumer price figures showing limited inflation, has lowered the chances of a Federal Reserve rate increase next month. CME's FedWatch Tool shows traders now pricing a 30% probability of a September hike, compared with 47% a month earlier. Lower interest rates reduce the cost of holding bullion, which pays no yield, and make it more appealing to investors.

Market attention now turns to the minutes of the Fed's July meeting, due Wednesday, which could offer further signals on the direction of monetary policy. For investors, the episode shows how US economic data can move gold prices through rate expectations, a useful reference point when tracking commodity markets.