Gold prices climbed for a third straight session on Tuesday as investors reduced expectations that the US Federal Reserve will raise interest rates next month. Traders are now waiting for the release of the Fed’s latest meeting minutes for more insight into the future path of monetary policy.
Spot gold rose 0.2% to $4,424.28 per ounce, while US gold futures for December delivery gained 0.2% to $4,480.90.
One factor supporting gold was the weaker US dollar, which remained near multi-month lows against major currencies. A weaker dollar makes gold cheaper and more attractive for buyers using other currencies, often boosting demand.
Market expectations for a September rate hike have also fallen. Investors now see about a 35% chance of a 25-basis-point increase, while the probability of rates remaining unchanged has risen to roughly 65%. The shift followed recent US economic data showing unexpected job losses in July, slower inflation growth, and weaker retail sales.
Attention is now focused on the Federal Reserve’s meeting minutes, scheduled for release on Wednesday. Investors hope the report will provide fresh clues about whether policymakers are leaning toward keeping rates steady or considering further tightening.
Other precious metals also saw movement. Silver jumped 0.9% to $66.40 per ounce, platinum gained 0.2% to $1,772.75, while palladium slipped 0.3% to $1,330.05 per ounce.
Gold also benefited from rising geopolitical tensions. Concerns increased after the United States ruled out extending a ceasefire agreement with Iran, while Iran signaled it could take a more aggressive military approach as efforts to reach a permanent deal appeared to stall.
With uncertainty surrounding both US monetary policy and global geopolitical developments, investors continue to view gold as a preferred safe-haven asset, helping support prices near record highs.
