Gold prices climbed slightly on Monday, buoyed by a weaker dollar and growing expectations of a US interest rate cut by the Federal Reserve. Spot gold inched up 0.2 per cent to $2,405.27 per ounce, inching closer to its all-time high of $2,483.60 set last week. US gold futures mirrored the trend, rising 0.3 per cent to $2,406.10. The dollar weakened initially after news broke of President Joe Biden ending his re-election campaign. A softer dollar makes gold more attractive for investors holding other currencies. The prospect of rate cuts and the political uncertainty in the United States are definitely supporting gold prices, said Kyle Rodda, a financial market analyst at Capital.com. Markets are currently pricing in a 97 per cent chance of a September rate cut by the Fed, according to the CME FedWatch Tool. Lower interest rates decrease the opportunity cost of holding non-yielding assets. This week's key economic data releases will be closely watched, with Friday's US personal consumption expenditures (PCE) data taking center stage. Other reports to watch include existing home sales, July S&P Global flash PMIs, advance second-quarter GDP figures, and weekly jobless claims. While gold prices dominated the headlines, other precious metals also saw gains. Spot silver rose 0.5 per cent to $29.12 per ounce, platinum edged up 0.1 per cent to $963.60, and palladium added 0.5 per cent to $910.19. Attribution: Reuters
