Gold prices rose for a third consecutive session on Tuesday, reaching their highest level in more than two months as investors awaited new US inflation data.
Gold traded at $4,417.32 per ounce, up 1.24%. US gold futures gained 1.7% to $4,492.60. Silver rose 1.03% to $66.30, while platinum reached $1,765.26 and palladium climbed to $1,394.
Tony Sycamore, a market analyst at IG, said recent gains reflect renewed safe-haven demand. Some investors also returned after missing the opportunity to buy when gold fell near $4,000. He believes prices could eventually reach $5,000 per ounce.
Markets are now focused on US inflation figures. The Consumer Price Index is due Wednesday, followed by Producer Price Index data on Thursday. Investors will use both reports to assess the Federal Reserve’s next move on interest rates.
Weak US labor data last week reduced expectations for another rate increase. The Federal Reserve kept rates unchanged at its July meeting, although three officials supported an increase.
Lower interest rates usually support gold because the metal does not pay interest. Investors often prefer it when returns on bank deposits and other interest-bearing assets become less attractive.
Geopolitical tensions are also supporting demand.
Iran has set tough conditions for a peace agreement, while US President Donald Trump has made additional demands. Trump called on Tehran to compensate families of people killed during war, attacks and protests.
The dispute has increased uncertainty over the Strait of Hormuz. Any delay in reopening the key shipping route could affect energy markets and broader investor confidence.
For now, traders are balancing geopolitical risk against upcoming US economic data. Gold remains supported by safe-haven buying, but inflation figures could determine whether the current rally continues.
Markets could remain volatile as investors reassess inflation, interest rates, geopolitical risks and growth.
