Audio By Carbonatix
Gold rose for a third straight session on Tuesday as fears of a U.S. interest rate hike next month eased, with investors awaiting minutes from the Federal Reserve's latest meeting for fresh clues on the monetary policy path.
Spot gold was up 0.2% at $4,424.28 per ounce by 0130 GMT, while U.S. gold futures for December delivery edged 0.2% higher to $4,480.90.
The U.S. dollar lingered around multi-month lows against most major currencies. A weaker U.S. currency makes dollar-priced metals cheaper for holders of other currencies.
Gold is extending its gains "after last week's soft U.S. economic data, which has raised hopes that the Fed will keep rates on hold this year," IG market analyst Tony Sycamore said.
Bullion tends to perform well in a low-interest-rate environment as it reduces the opportunity cost of holding non-yielding assets.
The U.S. central bank will keep its key interest rate unchanged next month and through year-end, according to most economists in a Reuters poll.
Market pricing for a September quarter-point hike flipped to a near-65% chance of a hold after unexpected job losses in July, lower-than-expected consumer price inflation and weaker retail sales.
Market focus will be on the minutes of the Fed's most recent policy meeting, due to be released on Wednesday.
"Additionally, gold appears to be regaining its safe-haven status as hawkish rhetoric from Iran helped gold brush off higher yields," Sycamore said.
Iran will shift to a "fully offensive" military posture because efforts to negotiate a permanent end to the war with the U.S. have stalled, a senior Iranian official told Reuters, as Washington ruled out extending a temporary ceasefire agreement.
Among other metals, spot silver rose 0.9% to $66.40 per ounce. Platinum inched 0.2% higher to $1,772.75, while palladium was down 0.3% at $1,330.05.
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