SINGAPORE — Gold advanced to $4,395.64 an ounce early Tuesday in Singapore, a two-month high, after gaining 3.6 percent over the previous two sessions.
Technical momentum supported the move. Gold crossed its 100-day moving average Monday, drawing dip-buyers and spurring inflows into Chinese gold-backed exchange-traded funds.
Market attention now turns to Wednesday's U.S. consumer price index report for July. Economists surveyed by Bloomberg project a 0.1 percent monthly rise, following a 0.4 percent decline in June. That moderation, if confirmed, would ease some pressure on the Federal Reserve and follows a weaker-than-expected jobs report Friday that signaled cooling economic conditions.
Energy prices complicate the picture. Elevated oil costs could push the Fed toward additional rate increases — a negative for gold, which offers no yield. Cleveland Federal Reserve President Beth Hammack said multiple rate hikes may be necessary to return inflation to the central bank's 2 percent target. Hammack was one of three Fed officials who dissented against last month's decision to hold borrowing costs steady.
Geopolitical risk is adding to energy price uncertainty. President Donald Trump issued new demands concerning Iran, clouding prospects for an agreement to reopen the Strait of Hormuz and reducing the likelihood of a near-term deal between Tehran and Washington to end the months-long conflict.
Gold has held above the $4,000-an-ounce level on central bank buying and renewed investor interest, but bullion remains roughly 17 percent below where it traded before the Iran war began in late February.
Silver was little changed at $65.75 an ounce. Platinum and palladium saw minor moves. The Bloomberg Dollar Spot Index fell marginally after rising 0.2 percent in the prior session.
