Gold Surges to Two-Month High Above $4,400 as Traders Eye US Inflation Report
Gold prices surged to a two-month high above $4,400 an ounce on Tuesday as traders turned their focus to this week's US inflation report. The metal rose by up to 1% after adding 3.6% over the previous two sessions.
Technical buying was spurred by gold's ascent through the 100-day moving average on Monday, a sign of recovery after recent weeks' dip-buyers and greater inflows from gold-backed exchange-traded funds in China.
Hebe Chen, an analyst at Vantage Markets, said that 'the tangled pieces around gold are finally starting to move into place,' giving the metal's recovery the shape of an early-stage shift into a new cycle.
The latest US inflation data due on Wednesday is expected to show a 0.1% rise in July following a 0.4% decline in the prior month, according to the median projection in a Bloomberg survey of economists.