Gold extends gains on easing rate-hike fears, markets await Fed minutes

Gold rose for a third consecutive session on Tuesday, according to Business Recorder, as concerns about a US rate increase next month eased. Spot gold gained 0.2% to $4,424.28 an ounce by 0130 GMT, while December US gold futures edged up 0.2% to $4,480.90. Attention now turns to the minutes of the Fed's latest meeting, due Wednesday, for further hints about the policy outlook.

The dollar stayed weak, sitting close to recent lows against most leading currencies, which makes metals priced in dollars cheaper for buyers using other money. Bullion typically does well in low-rate settings since the opportunity cost of owning a non-yielding asset drops. IG market analyst Tony Sycamore linked the rally to soft US economic data that raised hopes the Fed would hold rates steady this year. Sycamore also argued that bullion is regaining its haven appeal, with hawkish Iranian statements allowing it to withstand higher yields.

According to a senior Iranian official speaking to Reuters, Iran will adopt a fully offensive stance because talks on a lasting settlement of the conflict with Washington have stalled. Washington has also declined to prolong the short-term truce. Elsewhere in the metals market, silver gained 0.9% to $66.40 an ounce, while platinum rose 0.2% to $1,772.75 and palladium fell 0.3% to $1,330.05.