Gold prices moved higher on Tuesday after briefly touching their lowest level in two weeks, with bargain buying emerging following Monday’s sharp decline as investors looked ahead to key US inflation figures and testimony from Federal Reserve Chair Kevin Warsh.
Ongoing tensions in the Middle East and expectations that US interest rates could remain elevated also continued to influence sentiment after recent hawkish comments from Federal Reserve Governor Christopher Waller
At 09:58 GMT, spot gold (XAU/USD) gained 0.5% to $4,021.87 an ounce, while Gold Futures advanced 0.55% to $4,027.22. Silver (XAG/USD) rose 0.78% to $58.10 an ounce, and platinum (XPT/USD) added 0.34% to $1,609.82. Geopolitical Risks Keep Inflation in the Spotlight Gold recovered after falling almost 3% on Monday, its largest single-day decline in more than a month.
During the sell-off, the precious metal briefly traded below the $4,000-an-ounce level for the first time in three weeks. The latest market volatility followed a renewed escalation in the Middle East. President Donald Trump announced the reinstatement of a US blockade targeting Iranian shipping and declared Washington the “Guardian of the Hormuz Strait,” while proposing a 20% fee on cargoes passing through the strategic waterway.