Gold holds near $4,400 as fading Fed rate hike bets weigh on US Dollar

Gold (XAU/USD) struggles to build on its intraday advance on Monday but holds modest gains as the US Dollar (USD) remains under selling pressure amid fading expectations that the Federal Reserve (Fed) will raise interest rates at its September meeting.

At the time of writing, XAU/USD trades near $4,401 after touching an intraday high of $4,416 during Asian trading hours.

According to the CME FedWatch tool, markets now see around a 70% chance that the US central bank will keep rates unchanged next month, up from 48% a week ago.

The change in expectations from a hike to a pause follows a run of disappointing US economic releases. Nonfarm Payrolls…

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