Gold held inside its recent range on Tuesday as traders balanced a heavy week of U.S. jobs data against Middle East tensions that pushed oil prices sharply higher in July. Silver and platinum also advanced, while an analyst at IG said gold needs to clear $4,080 before a broader recovery can be confirmed.
Gold edged up 0.1% to $4,058.99 an ounce at 02:06 ET on Tuesday, while gold futures rose 0.6% to $4,114.50. Silver gained 1.3% to $58.95 an ounce, and platinum advanced 1.1% to $1,648.23.
Middle East tensions keep inflation risk alive
Brent crude surged more than 20% in July after fighting between the United States and Iran resumed and attacks on commercial tankers near Oman raised concerns over regional energy supplies. Higher oil prices have reinforced fears of renewed inflation, strengthening the case for the Federal Reserve to keep policy restrictive.
Adding to the uncertainty, Iran said on Monday that no negotiations with the United States are currently underway and that no meetings are planned, contradicting comments from President Donald Trump that talks were imminent. The US Dollar Index traded little changed around the 100 mark, offering bullion few fresh directional cues.
Jobs data and Fed comments in focus
Markets are also bracing for a heavy slate of U.S. labor data this week, including the ADP private payrolls report and Friday's nonfarm payrolls release, for clues on whether the Federal Reserve will need to tighten policy again this year. Three Fed officials dissented in favor of a rate hike at last week's meeting and have since made hawkish remarks. New York Fed President John Williams said policymakers remain prepared to raise rates if inflation persists.
Sycamore: breakout above $4,080 needed
Tony Sycamore, senior market analyst at IG, said gold continues to trade sideways within the roughly $4,000-$4,200 range that has contained prices for the past month. He said bullion first needs to clear resistance around $4,080, then the early-July peak near $4,202, to confirm a broader recovery is underway.
A sustained move above those levels could open the way toward the 200-day moving average near $4,490. Until then, Sycamore said the balance of risks still favors another test of the late-June low around $3,942.
Source: Investing.com
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