Gold Bounces in Asia Amid Fed Expectations and Geopolitical Tensions

Gold prices rose in Asia on Tuesday after two consecutive days of decline, but remained below $4,450 due to expectations of a hawkish Federal Reserve stance and ongoing geopolitical tensions.

The US Dollar eased from its three-week high as the Japanese Yen strengthened. However, markets remain cautious ahead of key inflation data releases, including the Producer Price Index (PPI) on Thursday and Consumer Price Index (CPI) on Friday.

The Strait of Hormuz is a major concern after Iran warned of retaliation and discussed enforcing a full blockade, which could impact energy prices and fuel inflation risks. The Nonfarm Payrolls (NFP) report showed August job growth accelerated, adding to the uncertainty.