Gold prices climbed to their highest level in more than two months on Tuesday, extending a rally that has seen the metal surge roughly 8 percent since the start of August. Spot gold gained 0.4 percent to $4,407.79 an ounce in early trading, while December futures advanced 1.1 percent to around $4,466.
The upward momentum follows Friday's 2.4 percent jump after U.S. nonfarm payrolls unexpectedly declined in July, reinforcing expectations for monetary easing. CME FedWatch currently indicates an 81 percent probability of a rate hike in December, though analysts anticipate July inflation data will show the annual rate cooling to 3.4 percent. The People's Bank of China also boosted its gold reserves in July by the most since October 2023.
Geopolitical friction continues to underpin prices. Iran said it is nearing a final agreement with Oman on new Strait of Hormuz shipping lanes, while President Donald Trump countered with demands for Iranian compensation for victims of past conflicts.