Weaker U.S. labor figures and a 5% drop in crude prices eased inflation concerns, lifting gold prices after two sessions of losses.
Gold prices advanced Tuesday, recovering from two consecutive declines, as a sharp drop in oil prices and disappointing U.S. jobs data reduced expectations for further interest rate hikes. Crude oil fell more than 5%, amplifying disinflationary pressures.
The move followed a string of mixed economic signals, with prior labor market reports showing resilience but recent figures missing consensus estimates. Markets had priced in a higher probability of a Fed rate increase before the data release.
Investors shifted focus to safe-haven assets, with gold benefiting from the softer inflation outlook and reduced rate hike odds.