Gold Hits Two-Month High as US Interest Rate Outlook Comes into Focus

Gold prices rose for a third straight session on Tuesday, hitting a more than two-month high. The precious metal was up 0.5% at $4,411.77 per ounce as of 0030 GMT, its highest level since June 5.

The rise in gold comes as market participants focus on upcoming inflation data for signals on the U.S. interest-rate outlook. Weak July job market data has driven financial markets to downgrade expectations that the Federal Reserve will raise rates next month.

Lower interest rates boost bullion's appeal, as it yields no interest. The Fed kept rates steady at its July meeting, with three officials dissenting in favor of a rate hike.