11.08.202606:30:13UTC+00Gold Pulls Back as Investors Take Profits

Gold slipped below $4,400 an ounce on Tuesday, surrendering earlier gains as investors locked in profits after a strong rally and assessed how surging oil prices might influence inflation and the outlook for interest rates. Earlier in the session, the metal had climbed to a two-month high, supported by continued buying from Chinese institutional investors seeking a hedge against volatility in other markets, while gold-backed exchange-traded funds in China registered their longest streak of inflows in months. The People’s Bank of China also accelerated its purchases, adding about 20 tons of gold to its reserves in July after acquiring roughly 15 tons in June, the largest monthly increase since October 2023. At the same time, uncertainty persisted around a possible US-Iran agreement to end the conflict and reopen the Strait of Hormuz. Investors were also awaiting key US inflation data due this week for fresh signals on the Federal Reserve’s policy trajectory.