Gold prices remained steady on Tuesday, staying close to their highest level in over a week. The market drew strength from growing expectations of a U.S. Federal Reserve rate cut in September. These hopes, fueled by weak jobs data, pushed the dollar and Treasury yields lower—offering fresh support to gold prices and Fed policy dynamics.
As of 04:32 GMT, spot gold was trading at $3,371.40 per ounce. The price touched its highest point since July 24 in the previous session. U.S. gold futures also held steady at $3,425.30.
A weaker dollar helped boost demand for gold, making it more affordable for buyers using other currencies. Meanwhile, the yield on the 10-year U.S. Treasury note fell to a one-month low, increasing the appeal of non-yielding assets like gold.
“Short-term momentum now favors the bulls,” said Kelvin Wong, senior analyst at OANDA. “The key factor behind rising gold prices and Fed policy speculation is the belief that the central bank will cut rates in September.”
That belief gained ground after the latest U.S. jobs report showed weaker-than-expected employment growth in July. Moreover, downward revisions of 258,000 jobs to May and June payrolls suggested deeper cracks in the labor market.
According to the CME FedWatch Tool, traders are now pricing in a 92% chance of a rate cut next month.
Gold, often seen as a safe-haven during economic uncertainty, tends to perform well when interest rates fall. Lower rates reduce the opportunity cost of holding non-yielding assets, making gold more attractive to investors.
Ongoing global tensions could also support gold’s status as a hedge. U.S. President Donald Trump once again threatened new tariffs on Indian imports over the country’s oil trade with Russia. India rejected the accusations as “unjustified” and promised to defend its interests, deepening the trade standoff.
Despite the bullish outlook, analysts noted some technical resistance near $3,450. “We may need a stronger catalyst for prices to move decisively above that level,” Wong said.
In other precious metals, spot silver slipped 0.1% to $37.37 per ounce. Platinum fell 0.4% to $1,324.05, and palladium dropped 0.4% to $1,201.47.