Gold rose on Tuesday after hitting a
two-week low earlier in the session, as markets awaited key U.S.
inflation data, with escalating U.S.-Iran tensions driving oil
prices higher and reinforcing expectations of further Federal
Reserve rate hikes.
Spot gold was up 0.6 per cent at $4,023.77 per ounce by 0747
GMT, after touching its lowest level since July 1 at $3,983.29.
U.S. gold futures for August delivery gained 0.6 per cent at
$4,030.30.
Gold shed about 3 per cent in the previous session, its biggest
daily percentage decline in more than a month, as continued
fighting between the U.S. and Iran drove oil prices to a
one-month high.
While gold is often viewed as a hedge against inflation,
higher rates tend to weigh on the non-yielding metal by
increasing the appeal of interest-bearing assets.
“You have a situation where the markets probably don’t want
to commit. They have a big batch of event risks in front of
them. There’s, of course, the Warsh testimony and then the CPI
print, so there’s a lot for people to look at in addition to the
headlines out of the Middle East,” said Ilya Spivak, head of
global macro at Tastylive.
Investors will closely watch June U.S. CPI data due later in
the day for fresh clues on inflation and the Fed’s policy path,
with PPI data and Fed Chair Kevin Warsh’s first semi-annual
testimony before Congress this week also in focus.
The U.S. central bank may need to raise interest rates “in
the near term” if coming data show inflation continuing well
above the 2 per cent target, Fed Governor Christopher Waller said on
Monday.
Traders have ramped up bets on a September U.S. interest
rate hike, with CME Group’s FedWatch Tool showing the
probability rising to around 76 per cent from 57 per cent a week ago.
Elsewhere, spot silver rose 0.6 per cent to $57.99 per ounce,
after earlier touching a two-week low.
Platinum lost 0.3 per cent to $1,600.24 and palladium
climbed 1.9 per cent to $1,269.98.
Published on July 14, 2026
