Gold Near 7-Week Low Ahead of US Data

Gold prices stabilized on Tuesday but hovered near their lowest level in over seven weeks amid concerns that the Federal Reserve (the US central bank) will keep interest rates at elevated levels for longer, as investors await a series of US economic data releases.

Spot gold prices saw little change, trading at $4,124.57 per ounce by 01:40 GMT, after hitting a low not seen since August 5 in the previous session.

Christopher Tahir, a market analyst at Exness, said geopolitical developments “will remain crucial for gold, as continued tensions could keep energy prices and yields high, while tangible progress toward de-escalation could ease the pressure.”

Officials from the United States and Iran stated that representatives from both countries held separate talks with mediators as part of new efforts to end the war that erupted seven months ago.

Oil prices rose for a second consecutive session amid ongoing concerns about potential supply disruptions in the Middle East.

Rising oil prices could fuel inflation by increasing costs across various sectors of the economy, potentially prompting central banks to raise interest rates to control price pressures.

Although gold is considered a hedge against inflation, it may face headwinds amid rising interest rates, as investors favor assets that generate yields.

Investors are awaiting a series of US economic data releases scheduled for this week, including job openings, the ADP employment report, Personal Consumption Expenditures (PCE) figures, and non-farm payrolls data, in search of new indicators regarding monetary policy.

In other precious metals, spot silver fell 0.6 percent to $60.62, platinum dropped 1 percent to $1,699.86, and palladium declined 0.5 percent to $1,209.08.