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

Business Recorder reported that spot gold edged up 0.4% to $4,391.07 per ounce by 0248 GMT on Monday, lifted by a weaker US dollar and softer economic figures. The metal had reached its highest level in more than two months last week. December-delivery US gold futures rose 0.3% to $4,448.10.

The dollar index slipped 0.1%, which makes metals priced in greenbacks more affordable for buyers holding other currencies. A surprise drop in US nonfarm payrolls for July, together with only mild consumer price inflation, has lowered expectations of a Federal Reserve rate increase next month. CME's FedWatch Tool shows traders now assign a 30% chance to a September hike, against 47% a month ago.

Cheaper borrowing trims the cost of holding bullion, which pays no yield, and so makes it more attractive to investors. Silver climbed 1.4% to $65.53 per ounce, platinum rose 0.3% to $1,752.36 and palladium gained 1.6% to $1,333.35. Markets are waiting for minutes of the Fed's July meeting, due on Wednesday, for further signals on monetary policy.