Gold prices traded slightly higher on Tuesday as investors remained focused on a busy week of U.S. labour market reports while continuing to monitor geopolitical tensions in the Middle East and their potential impact on inflation and Federal Reserve policy.
At 02:06 ET (06:06 GMT), spot gold (XAU/USD) gained 0.1% to $4,058.99 per ounce, while Gold Futures advanced 0.6% to $4,114.50.
Silver (XAG/USD) rose 1.3% to $58.95 per ounce, while platinum (XPT/USD) added 1.1% to $1,648.23.
Geopolitical Risks and Inflation Concerns Support Gold
Gold continued to trade within a relatively narrow range as markets balanced ongoing geopolitical uncertainty against expectations that elevated energy prices could delay any easing of U.S. monetary policy.
Brent crude climbed more than 20% during July after fighting between the United States and Iran resumed, while attacks on commercial tankers near Oman intensified concerns over regional energy supplies.
The rise in oil prices has fuelled worries that inflationary pressures could strengthen again, reinforcing expectations that the Federal Reserve may need to keep interest rates higher for longer.
Adding to market uncertainty, Iran stated on Monday that no negotiations with the United States were currently taking place and that no meetings had been arranged, contradicting comments from U.S. President Donald Trump suggesting that diplomatic talks were close.
Meanwhile, the U.S. Dollar Index remained broadly unchanged near the 100 level, offering little fresh direction for precious metals.
Labour Market Data Could Shape Fed Expectations
Investors are now turning their attention to several key U.S. employment reports due this week, including the ADP private payrolls figures and Friday’s nonfarm payrolls report, for further insight into the Federal Reserve’s next policy move.
Recent hawkish comments from three Federal Reserve officials who supported an interest-rate increase at last week’s meeting, together with remarks from New York Fed President John Williams that policymakers remain willing to raise rates if inflation remains persistent, have strengthened expectations that borrowing costs could stay elevated.
IG Sees Resistance Before Gold Can Recover
Tony Sycamore, senior market analyst at IG, said gold continues to trade sideways within the approximate $4,000-$4,200 range that has contained prices over the past month.
He said bullion must first break above technical resistance near $4,080, followed by the early July high around $4,202, before a broader recovery can be confirmed.
A sustained move above those levels could open the way for an advance towards the 200-day moving average near $4,490.
Until then, Sycamore said the balance of risks still points toward another test of the late-June low around $3,942, highlighting the market’s limited conviction despite recent price stability.