Gold prices have risen by 1.5% over the past two trading sessions, reaching about $4,415 per ounce. The gain comes as the US dollar weakened, making bullion cheaper for most buyers.
The dollar index dropped to its lowest level since May after a series of softer US economic data. Swap markets no longer fully price in another Fed rate increase before the year ends, a change from a week ago.
Despite the dollar’s fall, the possibility of further monetary tightening remains. This risk is compounded by ongoing Middle East tensions, with fighting flaring again in Lebanon. President Donald Trump has said he is not interested in extending the interim truce with Iran that was signed in June.
The Strait of Hormuz, a key shipping route, remains effectively closed after attacks on vessels. These geopolitical uncertainties keep gold’s price on a cautious path.
Investor demand for gold has rebounded, and central‑bank purchases have increased, notably from China. The metal’s recent rise above the $4,000 support level is supported by this renewed buying.
Last week, gold moved above its 100‑day moving average for the first time since April, a technical level that traders watch closely.
Market participants will examine the minutes from the Fed’s July policy meeting, set to release on Wednesday, for clues about the central bank’s future rate path. Chairman Kevin Warsh’s remarks at the Fed’s annual Jackson Hole symposium later this month will also be closely monitored.
Spot gold was little changed at $4,416.98 an ounce at 7:18 a.m. Singapore time. Silver traded flat at $65.80 an ounce, while platinum and palladium remained steady.
The Bloomberg Dollar Spot Index edged lower after a 0.1% decline on Monday, marking its third consecutive drop.