Gold Prices Rise Amid Weakened Rate Hike Expectations

Gold prices rose for the third consecutive session on Tuesday as expectations of a US interest rate hike in the coming months weakened. The Federal Reserve's latest policy meeting minutes are set to be released, providing insight into policymakers' views on inflation, employment, and future rate adjustments.

The December delivery of US gold futures increased 0.2% to $4,480.90 per ounce, while spot gold gained 0.2% to $4,424.28 per ounce by 0130 GMT. The precious metal has received support from growing expectations that the Federal Reserve may maintain its current interest-rate stance following a series of weaker-than-expected economic indicators.

According to Tony Sycamore, an IG market analyst, gold's recent advance is being supported by softer US economic data released last week. This data has strengthened expectations that the Federal Reserve could leave borrowing costs unchanged rather than move towards another rate increase.