Gold inches higher after soft US data dim chance of imminent rate increase
Bengaluru — Gold prices edged up on Monday as the US dollar fell to multi-month lows after the prospect for further interest rate increases in the US this year dimmed following softer US economic data last week. The US government reported on Friday that consumer prices were unchanged in June and retail sales declined for a second consecutive month. The soft inflation and domestic demand figures undermined arguments for the US Federal Reserve to raise interest rates, with traders cutting back their bets on the likelihood of an increase in December. The dollar huddled near a 10-month trough on Monday as upbeat Chinese news and the prospect of only gradual policy tightening in the US sent investors piling into leveraged positions in higher-yielding currencies and risky assets. The dollar index edged up 0.1% to 95.278, having touched its lowest since September. The weaker greenback supported gold since the dollar-priced commodity was less expensive for investors holding other currencies...
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