Bullion tends to perform well in a low-interest-rate environment as it reduces the opportunity cost of holding non-yielding assets.
Gold rose for a third straight session on
Tuesday as fears of a US interest rate hike next month eased,
with investors awaiting minutes from the Federal Reserve’s
latest meeting for fresh clues on the monetary policy path.
Spot gold was up 0.2 per cent at $4,424.28 per ounce by 0130
GMT, while US gold futures for December delivery edged
0.2 per cent higher to $4,480.90.
The US dollar lingered around multi-month lows against
most major currencies. A weaker US currency makes
dollar-priced metals less expensive for holders of other
currencies.
Gold is extending its gains “after last week’s soft US
economic data, which has raised hopes that the Fed will keep
rates on hold this year,” IG market analyst Tony Sycamore said.
Bullion tends to perform well in a low-interest-rate
environment as it reduces the opportunity cost of holding
non-yielding assets.
The US central bank will keep its key interest rate
unchanged next month and through year-end, according to most
economists in a Reuters poll.
Market pricing for a September quarter-point hike flipped to
a near-65 per cent chance of a hold after unexpected job losses in July,
lower-than-expected consumer price inflation and weaker retail
sales.
Market focus will be on the minutes of the Fed’s most recent
policy meeting, due to be released on Wednesday.
“Additionally, gold appears to be regaining its safe-haven
status as hawkish rhetoric from Iran helped gold brush off
higher yields,” Sycamore said.
Iran will shift to a “fully offensive” military posture
because efforts to negotiate a permanent end to the war with the
US have stalled, a senior Iranian official told Reuters, as
Washington ruled out extending a temporary ceasefire agreement.
Among other metals, spot silver rose 0.9 per cent to $66.40
per ounce. Platinum inched 0.2 per cent higher to $1,772.75,
while palladium was down 0.3 per cent at $1,330.05.
Published on August 18, 2026
