Gold Soars to Highest in Over Two Months on Inflation Data Anticipation

Gold prices rose for a third consecutive session on Tuesday to their highest level in over two months, reaching $4,432.74 per ounce. This increase comes as investors focus on upcoming inflation data for clues about the U.S. interest-rate outlook.

The spot gold price climbed 1% from the previous day's close, while U.S. gold futures rose 1.7% to $4,492.60. Tony Sycamore, a market analyst at IG, attributed the move to 'a degree of FOMO' (fear of missing out) among investors who missed the earlier dip to $4,000, as well as short-covering from speculative accounts and a return of safe-haven flows.

With weak July jobs data leading markets to scale back bets on a Federal Reserve rate hike next month, the U.S. consumer price report due Wednesday and producer price data on Thursday are likely to shape monetary policy expectations.