Gold Soars to Two-Month High Ahead of US Inflation Data

Gold prices rose to their highest level in over two months on Tuesday, driven by safe-haven demand and positioning ahead of US inflation data. Spot gold climbed 1% to $4,432.74 an ounce, its strongest since June 5, while futures gained 1.7% to $4,492.60.

The rebound has carried bullion sharply away from the $4,000 area tested in July, helped by weaker US employment data and short-covering. Analyst Fawad Razaqzada sees softer inflation as the clearest route to extending gold's breakout, which he believes could eventually reopen a path towards $5,000.

The World Gold Council expects investment to remain the main source of demand growth through 2026, with Asian buying and over-the-counter activity becoming increasingly important. However, central banks are also expected to remain significant net buyers, but Western ETF demand remains sensitive to real yields and monetary-policy expectations.