Gold rises as weaker dollar eases rate-hike expectations

Gold prices advanced Friday and headed for a weekly gain as a weaker U.S. dollar and inflation readings reduced expectations that the Federal Reserve would raise interest rates in September.

Spot gold rose 0.7% to $4,379.95 an ounce by 1:40 p.m. EDT and was about 0.9% higher for the week. The dollar index slipped 0.3%, making dollar-denominated gold cheaper for buyers using other currencies.

Markets put the probability of a September rate increase at 33%, down from 55% a week earlier, according to CME’s FedWatch Tool. Analysts cited weaker July payrolls and inflation data broadly in line with forecasts as support for expectations that the Fed would hold its current 3.50% to 3.75% rate range.

Other precious metals also rose Friday, with spot silver up 0.7% to $64.88 an ounce, platinum up 1.8% to $1,746.97 and palladium up 1.1% to $1,320.93.

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