Gold prices rise as weaker US dollar and lower interest rate expectations support precious metals market
Gold prices rose on Monday, supported by a weaker US dollar and fading expectations of the Federal Reserve to hike interest rates. Spot gold was up 0.9% at $4,413.93 per ounce, while gold futures for December delivery edged higher. Analysts from Heraeus noted that recent economic data, including lower-than-expected CPI and PPI figures, has reduced the implied probability of a September rate hike. This shift in market sentiment is broadly supportive of precious metals prices. Additionally, the US dollar fell to its lowest level in more than two months, making gold more attractive to international buyers. Geopolitical tensions in the Middle East continue to influence the market. While a deal to reopen the Strait of Hormuz remains uncertain, the market is pricing in a more optimistic picture for precious metals than during the earlier conflict. Meanwhile, silver production is surging, with Pan American Silver on track to meet its 2026 production guidance.