Gold Extends Gains as Fed Rate Hike Fears Eased

Gold prices rose for a third consecutive day on Tuesday as concerns over a potential U.S. interest rate hike in September eased. The Federal Reserve's latest meeting minutes are set to be released on Wednesday, providing investors with fresh clues about the central bank's monetary policy path.

The yellow metal gained 0.2% to $4,424.28 per ounce, while December delivery of U.S. gold futures edged 0.2% higher to $4,480.90. A weaker U.S. dollar made dollar-priced metals cheaper for holders of other currencies.

According to Tony Sycamore, an analyst at IG market, the rise in gold prices can be attributed to last week's soft U.S. economic data, which has raised hopes that the Fed will keep rates on hold this year. The central bank is expected to maintain its key interest rate unchanged next month and through year-end, according to most economists polled by Reuters.

The market is closely watching the minutes of the Fed's latest policy meeting for any indications of a potential rate hike. Additionally, gold appears to be regaining its safe-haven status as hawkish rhetoric from Iran helped gold brush off higher yields.