Gold ​rose on Tuesday after hitting a two-week low earlier ⁠in the session, as markets awaited key U.S. inflation data, with escalating U.S.-Iran tensions driving oil prices higher and reinforcing expectations of further ‌Federal Reserve rate hikes.

Spot gold was up 0.6 per cent at $4,023.77 per ounce by 0747 GMT, after touching its lowest ‌level since July 1 at $3,983.29.

U.S. gold futures for ‌August ⁠delivery gained 0.6 per cent at $4,030.30.

Gold shed about 3 per cent in ⁠the previous session, its biggest daily percentage decline in more than a month, as continued fighting between the U.S. and Iran drove oil prices to ​a one-month high.

While gold is ‌often viewed as a hedge against inflation, higher rates tend to weigh on the non-yielding metal by increasing the appeal of interest-bearing assets.

"You have a situation where the markets ‌probably don't want to commit. They have a big ​batch of event risks in front of them. There's, of course, the Warsh testimony and then ⁠the CPI print, so there's a lot for people to look at in addition to the headlines out of the Middle East," ‌said Ilya Spivak, head of global macro at Tastylive.

Investors will closely watch June U.S. CPI data due later in the day for fresh clues on inflation and the Fed's policy path, with PPI data and Fed Chair Kevin Warsh's first semi-annual testimony before Congress this week also in focus.

The U.S. ‌central bank may need to raise interest rates "in the near term" if ​coming data show inflation continuing well above the 2 per cent target, Fed Governor Christopher Waller said on Monday.

Traders ⁠have ramped up bets on a September U.S. interest rate hike, with ⁠CME Group's FedWatch Tool showing the probability rising to around 76 per cent from 57 per cent a week ago.

Elsewhere, spot ‌silver rose 0.6 per cent to $57.99 per ounce, after earlier touching a two-week low.

Platinum lost 0.3 per cent to $1,600.24 and palladium climbed 1.9 per cent ​to $1,269.98.

Published on July 14, 2026