Gold prices climbed sharply on Tuesday as falling oil prices eased inflation concerns and boosted expectations that the Federal Reserve may keep a softer monetary policy stance in the coming months.
Spot gold rose 1% to $4,092.43 an ounce, while the December futures contract gained 1% to reach $4,133.50 an ounce.
The move was driven largely by a sharp drop in oil prices. Brent crude fell more than 4%, hitting a three-week low, after statements from Qatari and United States officials revived hopes for a diplomatic resolution to the conflict with Iran and a normalization of oil flows through the Strait of Hormuz.
Focus Turns to US Jobs Data
Investors are now watching key US labor market figures due this week. The ADP employment report is released Wednesday, followed by nonfarm payrolls data Friday, which is expected to shape expectations for the Fed's next move.
Among other precious metals, silver rose 2.8%, while platinum and palladium each jumped 7.1%, benefiting from easing geopolitical tensions and improved expectations for the global economy. A risk-on mood is expected to continue through the rest of summer, with developed-market equities, particularly in Europe, remaining the preferred asset class.
