Gold Holds Near Two-Month High as Iran Risk and U.S. CPI Drive Demand

Gold extended its rally on Tuesday, with spot prices near $4,408 after closing Monday at a nearly 10-week high. The advance has remained resilient despite firmer Treasury yields, a steady dollar and higher oil prices, suggesting renewed safe-haven demand, short covering and investor FOMO are supporting bullion.

Markets are now focused on Wednesday’s U.S. CPI and Thursday’s PPI for clues on the Federal Reserve’s rate path. Meanwhile, uncertainty over Iran and the Strait of Hormuz is keeping geopolitical risk elevated, while continued Chinese central-bank purchases provide an additional demand tailwind.

Trader outlook: Gold’s ability to rise despite traditional headwinds signals strong underlying demand, but the $4,460–$4,500 area remains a key technical test. A hotter CPI could strengthen yields and challenge the rally, while softer inflation or persistent geopolitical risk could support a breakout.