Gold is grinding higher to $4,175.60/oz as softer oil offers support and the tape waits on the Fed. Traders are pricing only a 16% chance of a rate hike this month, so the bid is running on the rates

What happened: Gold prices edged higher on Monday as softer oil prices offered support, while investors assessed the chances of a Federal Reserve rate hike later this year. Key numbers: Spot gold rose 0.3 per cent to $4,175.60 per ounce by 0259 GMT. Why it matters: Tim Waterer of KCM Trade said gold is responding positively to softer oil from an inflation standpoint, and that a sustained oil decline or clearer move lower in yields would be the most constructive catalysts. Higher rates reduce the appeal of the non-yielding asset.

Gold prices edged higher on Monday as softer oil prices offered support, while investors assessed the chances of a Federal Reserve rate hike later this year.

Tim Waterer of KCM Trade said gold is responding positively to softer oil from an inflation standpoint, and that a sustained oil decline or clearer move lower in yields would be the most constructive catalysts. Higher rates reduce the appeal of the non-yielding asset.