Gold hits more than 2-month high.
Gold prices extended their rally on Tuesday, with bullion holding near its highest level in more than two months as renewed buying momentum outweighed pressure from a firmer U.S. dollar, Treasury yields and energy prices.
At 00:56 ET (04:56 GMT), XAU/USD rose 0.4% to $4,407.79 an ounce, while Gold Futures gained 1.1% to $4,467.59. XAG/USD fell 0.5% to $65.41 an ounce, while XPT/USD edged up 0.2% to $1,761.10.
Gold momentum builds ahead of U.S. inflation data
Gold’s latest advance follows a 2.4% jump on Friday, when data showed U.S. nonfarm payrolls unexpectedly declined in July. The metal also ended Monday at around $4,390, up 1.11%, marking its highest daily close in almost 10 weeks.
The rally has been notable because the U.S. dollar, Treasury yields and energy prices have also moved higher, factors that until recently would typically have weighed on non-yielding bullion.
Dollar steady with U.S. CPI on tap.
The U.S. dollar was largely steady on Tuesday as investors awaited U.S. inflation data for clues on the Federal Reserve’s interest-rate path, while the Australian dollar remained firm after the Reserve Bank of Australia kept rates unchanged as expected.
The US Dollar Index traded unchanged at 99.84 by 03:08 ET (07:08 GMT) after rising 0.3% in the prior session.
Yen gives up intervention-led gain; U.S. CPI awaited
The Japanese yen’s USD/JPY pair steadied around 159.30 yen after jumping 1% in the previous session.
The currency has surrendered nearly half of the gains made after a joint U.S.-Japan intervention helped lift it from a 40-year low of 163.99, while leaving investors wary of further official action.
Japanese markets were closed for a holiday, leaving trading thinner than usual.
The dollar remained under pressure after July U.S. payrolls unexpectedly fell by 23,000, versus expectations for an 80,000 increase. Markets have since pared some long-dollar positions, although expectations for at least one Fed rate hike this year remain.
Oil prices upbeat after sharp gains.
Oil prices rose further on Tuesday after rising sharply in the prior session on fading hopes that a deal to reopen the Strait of Hormuz was close.
Brent oil futures for October rose 0.26% to $87.93 a barrel by 02:11 ET (06:11 GMT), while West Texas Intermediate crude futures rose 0.37% to $82.42 a barrel.
Oil surges amid Hormuz deal doubts
Brent and WTI futures settled up more than 5% on Monday after both the U.S. and Iran demanded compensation for recent military attacks, dashing hopes that the two were near a deal to reopen the Strait of Hormuz.
The two also offered conflicting claims on the status of Hormuz, with Washington claiming that the waterway remained open, while Tehran said it had shut the channel with mines and drones.
U.S. President Donald Trump on Monday demanded that Iran pay compensation for people killed in the recent conflict, in response to Tehran’s demands for compensation.
This came despite recent assertions by U.S. authorities that a deal to reopen the key waterway was close, with oil prices having fallen sharply last week.
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