Gold prices extended their gains on Tuesday, holding close to their highest level in more than two months as renewed investor demand outweighed pressure from a stronger U.S. dollar, higher Treasury yields and rising energy prices.
At 00:56 ET (04:56 GMT), XAU/USD gained 0.4% to $4,407.79 an ounce, while gold futures advanced 1.1% to $4,467.59
XAG/USD fell 0.5% to $65.41 an ounce, while XPT/USD edged 0.2% higher to $1,761.10. Gold rally gathers pace before U.S. inflation figures The latest move follows a 2.4% jump in gold on Friday after data showed an unexpected decline in U.S. nonfarm payrolls during July. Bullion then finished Monday around $4,390, gaining 1.11% and recording its strongest daily close in almost 10 weeks.
The strength of the rally stands out because the dollar, Treasury yields and energy prices have also risen. These conditions would traditionally create headwinds for gold, which does not generate interest income. Tony Sycamore, senior market analyst at IG, attributed the resilience partly to buying from investors who missed gold’s earlier decline towards $4,000, alongside speculative short-covering and renewed safe-haven demand.