Gold Extends Gains as Rate Hike Fears Ease, Fed Minutes Awaited
Gold prices continued to rise on Tuesday, marking a third consecutive day of gains. The precious metal benefited from easing fears of a US interest rate hike next month and a weaker US dollar.
The spot price of gold was up 0.2% at $4,424.28 per ounce by 0130 GMT, while US gold futures for December delivery edged 0.2% higher to $4,480.90.
According to Tony Sycamore, an IG market analyst, gold's gains are largely due to last week's soft US economic data, which has raised hopes that the Federal Reserve will keep rates on hold this year.
The US central bank is expected to maintain its key interest rate unchanged next month and through year-end, according to most economists polled by Reuters. Market pricing for a September quarter-point hike flipped to a near-65% chance of a hold after unexpected job losses in July, lower-than-expected consumer price inflation, and weaker retail sales.