Gold Holds Steady Above $4,050 Amid Weaker Dollar and Rising Oil Prices

Gold prices maintained their steady pace above $4,050 on Tuesday (August 4), as a weaker US dollar provided support to bullion. The spot price of gold stood at $4,059.22 per ounce, up 0.1% from the previous day's close. Silver also edged higher, rising 0.24% to $58.34 per ounce.

The weaker dollar made gold cheaper for holders of other currencies and enhanced its appeal as a safe-haven asset. However, gains in gold were capped by rising crude oil prices, which have revived inflation concerns. Brent crude futures were up 0.8% at $84.20 per barrel, while WTI crude futures gained 0.5% to $80.71 per barrel.

Markets are currently pricing in a high probability of a Federal Reserve rate hike at the next FOMC meeting, with expectations strengthening further for subsequent meetings. The Middle East developments, particularly the progress of peace negotiations between Tehran and Washington, were also keeping investors on edge.