Gold hits two-month high as investors await US inflation data

Gold prices rose for a third consecutive session on Tuesday, reaching their highest level in more than two months as investors awaited inflation data for clues on the future path of US interest rates.

Spot gold climbed 1 percent to $4,432.74 per ounce, marking its highest level since June 5. US gold futures gained 1.7 percent to $4,492.60.

According to Reuters, Tony Sycamore, market analyst at IG, said the move was "driven in part by fear of missing out among those who missed the drop to $4,000, some short covering, and renewed safe-haven flows." He added, "In the medium term, we expect prices to break through this level and pave the way for a stronger rally toward $5,000."

The upcoming US consumer price index report, due Wednesday, and producer price data, set for release Thursday, are likely to influence monetary policy expectations. Last week's weak US jobs data for July reduced market expectations of a Federal Reserve interest rate hike next month.

Among other precious metals, spot silver rose 0.9 percent to $66.30 per ounce, platinum gained 0.7 percent to $1,765.26, and palladium advanced 0.8 percent to $1,394.