Gold Extends Gains as Rate Hike Fears Ease Ahead of US Fed Minutes
Gold prices extended their gains on Tuesday for the third consecutive session as fears of a US interest rate hike in September eased, with investors awaiting the minutes from the US Federal Reserve's latest meeting for fresh clues on monetary policy.
The spot price of gold rose by 0.2 per cent to $4,424.28 per ounce by 1:30 GMT, while US gold futures for December delivery edged 0.2 per cent higher to $4,480.90.
According to Tony Sycamore, an IG market analyst, gold is benefiting from the soft US economic data released last week, which has raised hopes that the Fed will keep rates on hold this year.
A weaker US dollar makes dollar-priced metals less expensive for holders of other currencies, contributing to gold's rally. The US central bank is expected to keep its key interest rate unchanged in September and through end-2026, according to most economists polled by Reuters.