Gold rises ahead of key US inflation data, ounce tops $4,400

Gold prices rose by nearly one percent on Monday, supported by declining expectations that the US Federal Reserve will raise interest rates next month, as investors await key US inflation data that could reshape monetary policy forecasts.

Spot gold gained 0.9% to $4,406.34 per ounce, while US gold futures for December delivery rose 0.6% to $4,466.70. Gold had reached a 10-week high yesterday before encountering technical resistance at the 100-day moving average near $4,387, ending lower at settlement for the second time this month.

According to Reuters, Kelvin Wong, senior market analyst at OANDA, said the main driver for gold is the reduced expectation of a Federal Reserve rate hike.

Based on CME Group’s FedWatch tool, traders now see a 50% chance of a rate increase in September, down from 60% before the release of the jobs report.

Among other precious metals, spot silver rose 1.2% to $65.46 per ounce, trading below the highest level since June 22 reached yesterday. Platinum gained 0.6% to $1,754.10, while palladium rose 0.8% to $1,370.86.