OTTAWA (dpa-AFX) - Gold futures settled notably higher on Monday, extending gains to a fourth straight session, amid continued optimism about an interest rate cut by the Federal Reserve in September.
A sluggish dollar contributed as well to the yellow metal's gains. The dollar index, which climbed to 103.31 around mid morning, dropped to 103.09 subsequently, down slightly from the previous close.
Gold futures for August ended up $30.30 or about 1.25% at $2,462.40 an ounce, a near 4-week high.
Silver futures for August ended higher by $0.430 or about 1.56% at $27.917 an ounce, while Copper futures for August climbed to $4.0710 per pound, gaining $0.0910.
U.S. inflation data, due later in the week is expected to show a drop in consumer prices.
The headline annual inflation is seen declining to 2.9% in July from 3% in June. The core component thereof is seen falling to 3.2% from 3.3% previously. Month-on-month inflation as well as its core component are both seen at 0.2%.
The CME FedWatch tool reveals that markets overwhelmingly expect a Fed rate cut in September, with a 51.5% probability for a 25 basis points cut and a 48.5% probability for a rate cut of 50 basis points.
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