Global gold prices edge up as weaker U.S. dollar provides support

Tehran - BORNA -  Spot gold rose 0.3 percent to $4,414.28 per ounce, following a 0.7 percent gain in the previous session, while US gold futures for December delivery dipped slightly by 0.1 percent to $4,457.20 per ounce.

The persistent weakness in the US dollar index has made dollar-denominated bullion more attractive to foreign currency buyers. Edward Meir, an analyst at Marex, noted that foreign exchange shifts are currently overriding regional geopolitical developments in the Persian Gulf, adding that the greenback has unexpectedly failed to strengthen despite the prospect of US interest rate hikes.

Investors are closely monitoring key upcoming US economic indicators, including the Producer Price Index (PPI) due later today and the Consumer Price Index (CPI) scheduled for release on Friday.

While a Reuters poll of economists anticipates the Federal Reserve will hold interest rates steady during its September 15–16 meeting and throughout the rest of the year, market sentiment remains divided. Data from the CME FedWatch Tool indicates traders are currently pricing in a 60 percent probability of a rate hike this month, a move that typically weighs on the non-yielding asset.

However, broader fiscal concerns continue to provide structural support for the precious metal. Daniel Hynes, senior commodity strategist at ANZ Bank, highlighted that mounting US fiscal pressures—exacerbated by the total US national debt surpassing $40 trillion for the first time last month—are eroding investor confidence in US government debt and the dollar, reinforcing gold's appeal as a safe haven.

In other precious metals markets, silver rose 0.3 percent to $67.50 per ounce, palladium gained 0.2 percent to $1,356.20 per ounce, while platinum slipped 0.4 percent to $1,888.05 per ounce.

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