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Gold rises as Fed rate hike doubts continue to support

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Investing.com - Gold prices edged higher on Tuesday, as investors remained unconvinced that the Federal Reserve will hike rates again this year.

Comex gold futures for August were at $1,269.10 a troy ounce by 8:15AM ET (1215GMT), up $4.40, or around 0.4%.

Gold prices ended mostly flat but in positive territory on Monday.

The yellow metal has been well-supported in recent weeks as fading expectations for a third Fed rate hike this year combined with deepening political turmoil in the White House boosted the appeal of the precious metal.

With no major economic reports on Tuesday's calendar, market players looked ahead to monthly U.S. inflation indicators due later in the week for fresh clues on the timing of the next Fed rate hike.

A report on producer prices for July is due out on Thursday and the consumer price inflation report will be released on Friday.

St. Louis Fed President James Bullard said Monday the central bank doesn't need to raise rates in the near term because inflation is unlikely to rise significantly, despite improvements in the labor market.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Elsewhere on the Comex, silver futures tacked on 9.7 cents, or around 0.6%, to $16.34 a troy ounce. It fell to its lowest since July 18 at $16.09 on Monday.

Meanwhile, copper futures declined 0.9 cents, or roughly 0.3%, to $2.898 a pound, after China reported weaker-than-anticipated exports and imports for July, raising concerns over whether global demand is starting to cool.

The Asian nation is the world's largest copper consumer, accounting for almost 45% of world consumption last year.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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