Gold Edges Higher As Dollar Dips On Weak US Data

(RTTNews) - Gold prices edged higher on Monday as investors kept a close eye on geopolitical developments in the Middle East and pondered the U.S. Federal Reserve's next move on interest rates.

Spot gold rose half a percent to $4,397.82 an ounce as the U.S. dollar slipped towards two-month lows following softer U.S. retail sales and consumer sentiment data released on Friday. U.S. gold futures were up 0.4 percent at $4,454.62.

Economic concerns are back in the spotlight after July U.S. retail sales dropped by the largest margin in over a year and a measure of U.S. consumer sentiment fell for the first time in three months amid worries about worsening business conditions and the rising cost of living.

Ahead of the Fed's upcoming Jackson Hole meeting later this month, traders now eagerly await the minutes of last month's FOMC meeting on Wednesday for fresh insights on how board members view inflation and the interest-rate environment.

According to CME's FedWatch tool, expectations for a rate hike at the Fed's September meeting currently stand at about 33 percent.

Quarterly earnings from retailers, including Home Depot, Lowe's, Target and Walmart due this week may also offer fresh clues about the health of the world's largest economy amid persistent inflation.

Elsewhere, a slew of data showed today that Chinese consumer spending stalled in July, urban investment contracted at a faster pace and unemployment ticked higher, adding to pressure on Beijing to step up policy response in the second half of the year.

On the geopolitical front, Iran said it has not yet decided whether to resume negotiations with the Unted States and that a "new path" must be established to resolve the conflict.

Saudi Arabia has warned of a "potential danger" in Jazan province in the country's southwest amid renewed Houthi attacks on Saudi energy facilities.

At least 11 people were killed in Israeli strikes on southern Lebanon on Saturday, one of the deadlines days of fighting in months, clouding prospects for a ceasefire agreement to end the conflict.

The Trump administration intends to impose severe economic pressure on Iran, with Treasury Secretary Scott Bessent suggesting Washington will announce additional sanctions as early as this week to isolate Iran economically.