Gold prices edged higher on Tuesday and remained above $4,050 per ounce as investors weighed renewed US-Iran tensions against inflation risks and upcoming US labor-market data.
Spot gold rose 0.1% to $4,057 per ounce during early trading. US gold futures gained 0.6% and reached $4,113.67.
The metal has traded within a narrow range in recent weeks. Investors remain concerned about geopolitical instability in the Middle East. At the same time, they fear that higher energy prices could keep inflation elevated and encourage the Federal Reserve to maintain high interest rates for longer.
Brent crude rose by more than 20% in July after fighting between the United States and Iran resumed and oil tankers near Oman came under attack. The increase strengthened concerns that energy costs could push inflation higher and support tighter monetary policy.
Political uncertainty also continued. Iran said on Monday that no negotiations with Washington were taking place. That statement contradicted remarks from US President Donald Trump, who suggested diplomatic talks were approaching.
Markets are now waiting for several important US employment reports. These include ADP private-sector data and Friday’s nonfarm payrolls report. Investors will use the figures to judge whether the Federal Reserve may raise interest rates again this year.
Tony Sycamore, a senior market analyst at IG, said gold has remained between $4,000 and $4,200 for nearly one month.
He said gold must break above resistance at $4,080 and then surpass the recent peak of $4,202 to confirm a new upward trend. Such a move could push the price toward $4,490.
However, failure to gain momentum could send gold down toward $3,942. For now, investors remain cautious as geopolitical risks, oil prices, inflation expectations and US economic data continue to shape the market. The dollar’s movement and bond yields may also influence demand during coming sessions.
