Gold Climbs to More Than Two-Month High as Iran Talks and U.S. Inflation Take Focus
MacroCommodityGeopolitics
Gold prices extended gains on Tuesday, holding near their highest level in more than two months as renewed investor demand outweighed pressure from a stronger U.S. dollar, higher Treasury yields and rising energy prices. Spot gold gained 0.4% to $4,407.79 an ounce, while gold futures advanced 1.1% to $4,467.59. The rally follows a 2.4% jump on Friday after an unexpected decline in U.S. nonfarm payrolls during July, with bullion recording its strongest daily close in almost 10 weeks on Monday. Attention is now turning to Wednesday's U.S. consumer price index and Thursday's producer price index, which could provide further signals about the Federal Reserve's interest-rate outlook. Uncertainty around Iran's negotiations over the Strait of Hormuz has also supported safe-haven demand, while the People's Bank of China increased its gold reserves in July by the largest amount since October 2023, adding another source of demand.
