International Desk | August 4, 2026
Gold prices rose modestly in international markets on Tuesday as investors weighed mixed signals from U.S.-Iran negotiations and awaited key U.S. labor market data due later this week.As of 02:57 GMT, spot gold was up 0.2% at $4,059.81 per ounce, according to Reuters.
Ajay Kedia, Director of Mumbai-based Kedia Commodities, said gold is currently undergoing a price correction. He noted that weaker-than-expected U.S. labor market data could put pressure on the U.S. dollar, providing further support for gold prices.
Geopolitical tensions involving the United States and Iran have also pushed up energy costs, fueling concerns about inflation. Rising inflation could prompt central banks to increase interest rates to keep price pressures under control. Although gold is widely regarded as a hedge against inflation, higher interest rates tend to weigh on the non-yielding precious metal.
Market participants are currently pricing in a 65% probability of a U.S. Federal Reserve interest rate hike in September. At its latest policy meeting, the Fed left interest rates unchanged despite differing views among policymakers.
Kedia said that if expectations for a September rate hike weaken, it would likely provide additional support for gold prices.
Meanwhile, John Williams, President of the New York Federal Reserve Bank, expressed optimism that inflationary pressures would gradually ease. However, he cautioned that the Federal Reserve would not hesitate to raise interest rates if inflation remains persistent.
Among other precious metals, spot silver climbed 1% to $58.74 per ounce, while platinum gained 1.2% to $1,646.59 per ounce. Palladium also rose 1.2% to $1,279.55 per ounce.
