Gold Prices Rise as Investors Await Fed Clues and Labour Market Reports

Gold prices rose slightly on Tuesday as investors weighed mixed signals on potential U.S.-Iran talks and awaited key labour market reports for clues on the Federal Reserve's interest rate trajectory.

The spot gold price increased by 0.2% to $4,062.41 per ounce by 0504 GMT, while U.S. gold futures rose 0.7% to $4,117.50.

Market experts believe that if the job market shows weakness, it could put pressure on the U.S. dollar and lead to gains in gold. However, higher interest rates tend to weigh on gold as it yields no interest.

Citi has predicted that gold prices will stagnate or decline over the next month before rallying to $4,500 in the fourth quarter and reaching $5,000 by the first half of next year.