Gold advances as US dollar softens, silver climbs over 1% — Reuters

Gold prices pushed higher on Monday, August 17, driven by a softer US dollar and subdued macroeconomic data that dampened expectations of a Federal Reserve interest rate hike in September.

Spot gold rose 0.4% to $4,391.07 per ounce, while US gold futures for December delivery added 0.3% to settle at $4,448.10, Reuters reported.

The US Dollar Index slipped 0.1%, improving the affordability of greenback-denominated bullion for holders of non-dollar currencies. Rate-hike sentiment cooled following softer-than-projected US employment prints alongside moderate inflation prints. According to CME Group’s FedWatch Tool, markets are currently pricing in a roughly 30% probability of a September rate hike, down from 47% recorded earlier. Lower benchmark rate expectations bolster non-yielding gold assets.

Silver outpaced the precious metals basket, with spot prices advancing 1.4% to $65.53 per ounce. Platinum gained 0.3% to $1,752.36, while palladium rose 1.6% to $1,333.35 per ounce. Market participants are turning their attention to the upcoming release of minutes from the Federal Reserve’s July meeting to gauge forward monetary policy signals.

N.Tebrizli