SINGAPORE: Spot gold rose 0.3 percent to $4,388.62 an ounce, while US gold futures for December delivery gained 0.2 percent to $4,444.30.
The US dollar index fell 0.1 percent, making gold, which is priced in dollars, cheaper for buyers holding other currencies.
Expectations for a US Federal Reserve rate hike in September have weakened following an unexpected decline in US non-farm payrolls in July and data released last week showing only a modest increase in consumer prices.
According to CME’s FedWatch tool, markets are now pricing in a 33 percent probability of a September rate hike, down from 47 percent a month earlier.
Lower interest rates generally support gold prices by reducing the opportunity cost of holding the non-yielding asset.
Among other precious metals, spot silver rose 0.8 percent to $65.19 an ounce, while platinum gained 0.4 percent to $1,755.40. Palladium climbed 1.2 percent to $1,329 an ounce.