Gold Prices Climb as Rate-Hike Fears Eased

Gold prices rose for a third consecutive session on Tuesday, as fears of a U.S. interest rate hike next month eased.

The precious metal is extending its gains following last week's soft U.S. economic data, which has raised hopes that the Federal Reserve will keep rates on hold this year.

According to Tony Sycamore, an analyst at IG Market, gold tends to perform well in a low-interest-rate environment as it reduces the opportunity cost of holding non-yielding assets.

The U.S. central bank is expected to maintain its key interest rate unchanged next month and through year-end, with most economists predicting no change.