Gold Prices Rise as US Rate Hike Expectations Diminish
· Business · Economic Times, Bloomberg, Zee News
Gold prices increased in early Asian trading on Monday as a weaker dollar and cooling economic data reduced expectations of a US Federal Reserve interest rate hike in September. Spot gold rose 0.3% to $4,388.62 per ounce, while December delivery futures edged up 0.2% to $4,444.30. Market data from the CME FedWatch Tool shows the probability of a September rate increase has fallen to 33%, down from 47% a month ago. Meanwhile, gold discounts in India have widened to their highest levels in over two months.
Why it matters
Lower interest rate expectations generally benefit gold prices, which is a key indicator for Indian investors and the domestic bullion market.
Read the original report — Economic Times
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