Gold Climbs to Two-Month High as Markets Await US Inflation Data

Gold prices extended their rally for a third consecutive session on Tuesday, climbing to their highest level in over two months. The uptick comes as market participants turn their attention to upcoming US inflation figures, which could offer fresh signals on the Federal Reserve's monetary policy trajectory.

Spot gold was up 0.5% at $4,411.77 per ounce, its strongest level since June 5. US gold futures also advanced, gaining 1.2% to $4,472.10.

The precious metal has found support from a weaker-than-expected jobs report released on Friday. Data showed the US economy lost 23,000 jobs in July, even as the unemployment rate ticked down to 4.1% from June's 4.2%. The soft labour market reading has prompted financial markets to scale back expectations of a rate hike at the Fed's next meeting.

Lower interest rates tend to boost gold's appeal, as the metal yields no interest of its own. At its July meeting, the Federal Reserve held rates steady, though three officials dissented in favour of a hike.

Investors are now looking ahead to the release of US consumer price data on Wednesday and producer price figures on Thursday, which could shape expectations for the central bank's next move.

In other developments, geopolitical tensions remained in focus after US President Donald Trump responded to Iran's conditions for a peace deal with his own demands, a rhetorical escalation that could complicate efforts to reopen the Strait of Hormuz.

Among other metals, spot silver rose 0.6% to $66.16 per ounce, platinum gained 0.6% to $1,763.60, and palladium added 0.6% to $1,391.21. In corporate news, Barrick Mining reported a rise in second-quarter profit, supported by higher bullion prices.