Gold rises for third session as US rate-hike expectations ease

WASHINGTON, United States — Gold extended its rally for a third consecutive trading session, supported by a decline in expectations of further US interest rate increases. Spot gold climbed 0.2% to $4,424.28 per ounce, while December US gold futures gained 0.2% to $4,480.90 per ounce. The US dollar hovered near multi-month lows against several major currencies, making dollar-denominated gold more accessible to investors holding other currencies. Market pricing showed the probability of a 25-basis-point rate hike in September falling to 35%, while the implied odds of rates being left unchanged rose to 65%. The shift followed weaker-than-expected US employment data in July, slowing consumer inflation and soft retail sales figures. Investors are awaiting the minutes of the Federal Reserve's latest monetary policy meeting, due Wednesday, for further guidance on the central bank's outlook. Among other precious metals, spot silver rose 0.9% to $66.40 per ounce and platinum added 0.2% to $1,772.75, while palladium slipped 0.3% to $1,330.05. Gold's gains were also supported by rising geopolitical tensions after Washington ruled out extending a ceasefire with Iran and Tehran signaled a more aggressive military posture amid stalled efforts to reach a lasting agreement.