Gold prices rose for a third consecutive session on Tuesday, reaching their highest level in more than two months, as investors awaited inflation data for clues about the future path of U.S. interest rates.
اضافة اعلان
Spot gold rose 1% to $4,432.74 per ounce by 02:17 GMT, reaching its highest level since June 5. U.S. gold futures gained 1.7% to $4,492.60 per ounce.
Tony Sycamore, a market analyst at IG, said the move was driven partly by a fear of missing out among investors who missed the previous decline toward the $4,000 level, along with some short-covering and renewed safe-haven flows.
“Over the medium term, we expect prices to break through this level, paving the way for a stronger recovery toward $5,000,” he said.
The U.S. consumer price index report due Wednesday and producer price data scheduled for Thursday are expected to influence expectations for monetary policy. Weak U.S. jobs data for July, released last week, had already reduced market expectations for the Federal Reserve to raise interest rates next month.
At its July meeting, the Federal Reserve left interest rates unchanged amid divisions among policymakers.
Lower interest rates typically support gold, which does not generate interest income.
Fawad Razaqzada, a market analyst at Forex.com, said in a note that if economic data continued to point to a slowdown without a significant rise in inflation, markets could further reduce their expectations for tighter monetary policy.
“That would likely leave the dollar vulnerable to weakness and provide another supportive backdrop for gold,” he said.
Geopolitical Developments
On the geopolitical front, U.S. President Donald Trump responded to Iran’s conditions for reaching an agreement by demanding that Tehran pay compensation for people killed in wars, attacks and protests.
The escalation in rhetoric is likely to complicate efforts to reopen the Strait of Hormuz.
Among other precious metals, spot silver rose 0.9% to $66.30 per ounce, platinum gained 0.7% to $1,765.26, while palladium climbed 0.8% to $1,394 per ounce.
