Gold modestly up as US dollar weakens

Gold prices rose slightly today, Sept. 4, as the US dollar tumbled in light of calm trading due to the market holiday in the US.

This came amid growing expectations that the Federal Reserve may stop raising interest rates further this year. According to the CME FedWatch Tool, investors are pricing in a 93% chance that the US central bank will fix interest rates at the forthcoming September meeting.

Bullion for December delivery rose by 0.13%, or $2.60, at $1,969.70 per ounce at 10:49 am Makkah time, with spot prices also up 0.20%, or $3.91, at $1,943.97 an ounce.

Silver futures for December delivery, on the other hand, contracted by 0.19% at $24.52 per ounce, in tandem with a 0.11% drop in platinum spot prices to $962.82 an ounce.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, shed 0.14% to 104.09 points.

US markets are witnessing an official holiday today in observance of Labor Day. Trading will resume tomorrow, Sept. 5.