Gold edges higher to $4,397 on weaker dollar

August 17, 2026 (MLN): Gold prices moved higher on Monday, supported by a softer US dollar and recent weak economic data that dampened expectations of a US interest rate hike next month.

Currently, spot gold is up 0.48% to $4,396.68 an ounce as of [11:26 am] PST, according to data reported by Mettis Global.

An unexpected drop in US nonfarm payrolls for July, together with data pointing to only modest consumer price inflation, has lowered the likelihood that the Federal Reserve will raise interest rates next month, according to Reuters.

 According to CME's FedWatch Tool, traders are now pricing in a 30% probability of a September rate hike, down sharply from 47% a month earlier.

Lower interest rates ease the opportunity cost of holding non-yielding bullion, which in turn boosts its attractiveness to investors.

Markets are now looking ahead to the minutes of the Fed's July meeting, due Wednesday, for further signals on the central bank's monetary policy direction.

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