Gold price hits two-month high

Gold prices have hit their highest level in more than two months in the international market. Investors are now looking for guidance on the Federal Reserve's possible decision on interest rates ahead of the release of new data on US inflation. That is why the price increase.

Spot gold prices rose 1 percent at 8:17 pm Bangladesh time on Tuesday (August 11). It reached $4,432.74 per ounce. Earlier, gold prices reached their highest level since June 5.

On the other hand, US gold futures prices rose 1.7 percent to $4,492.60 per ounce. According to Reuters, the price of gold has increased due to the possibility of interest rate cuts.

According to market analyst Tony Sycamore, those who could not buy when the price of gold fell near $4,000 have now developed a buying urge or FOMO. Some speculative investors are also closing short positions and demand for gold as a safe haven is also returning.

The next big driver in the market could be US inflation data. The country's July consumer price index is due on Wednesday and the producer price index on Thursday. These data could have a major impact on market expectations about the Fed's interest rate.

Last week, the US July employment data was weaker than expected, reducing the likelihood of the Fed raising interest rates in September. Although the Fed left interest rates unchanged at its July meeting, three officials voted in favor of raising rates. Usually, the price of gold rises when the possibility of a rate cut increases.

Meanwhile, geopolitical tensions are also supporting the gold market. The US and Iran have been at odds over a peace deal with Iran and the reopening of the Strait of Hormuz. President Donald Trump has demanded compensation from Iran for those killed in the war, attacks and protests. This has complicated talks on reopening the Strait of Hormuz.

This has also affected the energy market. Oil prices rose more than 5 percent on Monday, raising concerns about inflation, making Wednesday's U.S. CPI data even more important.

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