Gold extends gains on easing rate-hike fears, markets await Fed minutes

NEW YORK - Gold experienced a third consecutive day of gains on Tuesday, as concerns about an imminent US interest rate hike next month diminished. Traders are eagerly anticipating the Federal Reserve's minutes from their latest meeting, which may provide more insights into the central bank's future monetary policy. Gold prices stood at US$4,424.28 per ounce, while December futures for US gold futures increased by 0.2 percent to US$4,480.90.

The US dollar remained relatively weak against major currencies, which makes dollar-priced metals more affordable for holders of other currencies. Gold's gains continue to build upon last week's soft US economic data, which has fueled speculation that the Fed may maintain rates at their current level this year. According to a Reuters poll, most economists anticipate that the US central bank will keep interest rates unchanged through the end of the year.

The US Federal Reserve is expected to maintain its key interest rate steady next month and throughout the year, as per a Reuters poll. Trading attention will shift to the minutes of the Fed's most recent policy meeting, set for release on Wednesday. Furthermore, gold seems to be regaining its reputation as a safe-haven asset, as hawkish statements from Iran have helped the precious metal recover from higher yields.

Iran is expected to adopt a more aggressive military stance due to stalled negotiations for a permanent end to the conflict with the US, according to a senior Iranian official speaking to Reuters. In contrast, other metals showed mixed performance. Spot silver rose by 0.9 percent to US$66.40 per ounce, while platinum increased marginally by 0.2 percent to US$1,772.75, and palladium declined by 0.3 percent to US$1,330.05.