Rate hike expectations ease, US dollar approaches over two-month low, gold prices edge higher on Monday

1. On Monday, gold prices rose moderately, climbing as much as 0.93% to $4,416.53 per ounce, mainly supported by recent economic data dampening the Federal Reserve's rate hike expectations and a weakening US Dollar Index. Currently, gold is hovering just below the 4,400 mark, quoted at $4,398.36 per ounce.2. On Monday, the US Dollar Index fell as much as 0.19% to 99.43, approaching the nearly two-month low of 99.38 reached on June 15.3. US non-farm payroll numbers unexpectedly decreased in July, coupled with moderate consumer inflation data, reducing market expectations for a Federal Reserve rate hike in September from 47% a month ago to about 30%. The market is now awaiting the release of the Federal Reserve's July meeting minutes on Wednesday to further assess policymakers' balancing stance on inflation and economic growth.4. Market analysts pointed out that gold started this week with a stronger trend, as soft inflation data put pressure on the dollar and provided upside potential for gold prices. The next step is to challenge the $4,400 round-number threshold. To maintain a position above $4,500, a further weakening of the dollar or a more significant decline in energy prices may be needed.