On Tuesday, gold rose for three days in a row as investors awaited the minutes from the Federal Reserve’s most recent meeting for clues about the future of monetary policy as worries about a possible interest rate hike next month in the United States subsided. By 0130, spot gold had climbed 0.2% to $4,424.28/oz, and U.S. gold futures for December delivery had climbed 0.2% to $4,480.90/oz. Near multi-month lows vs other major currencies, the US dollar stayed put. When the value of the dollar drops, investors with other currencies can buy metals priced in dollars at a discount.

Gold is continuing its upward trend “after last week’s ⁠soft U.S. economic ‌data, which has raised hopes that the Fed ​will keep rates on ​hold this year,” according to analyst Tony Sycamore. When interest rates are low, the opportunity cost of storing assets that don’t earn any money goes down, which is why gold usually does well in such a market. According to a poll, most economists expect the Federal Reserve to keep its benchmark interest rate at its present level next month and for the rest of the year.

In the wake of unexpectedly low consumer price inflation, muted retail sales, and unexpectedly high job losses in July, market pricing for a September quarter-point raise swung to a nearly 65% probability of a stay. The minutes of the most recent policy meeting of the Federal Reserve are expected to be released on Wednesday, and the market will be focused on them. “Additionally, ​gold appears to be ⁠regaining its safe-haven status as hawkish rhetoric from Iran helped gold brush off higher yields,” Sycamore said.

An Iranian official has stated that the country will take a “fully offensive” stance in the military because talks between Iran and the United States to end the war permanently have stalled and the United States has rejected the idea of prolonging the current ceasefire. Spot silver prices rose 0.9% to $66.40/oz, among other commodities. While palladium fell 0.3% to $1,330.05., platinum increased 0.2% to $1,772.75.