On Tuesday, gold prices experienced an increase, continuing a trend observed over the past three sessions. This upward movement was bolstered by a decline in the U.S. dollar and reduced Treasury yields, a reaction to last week’s disappointing U.S. jobs data that heightened anticipations of a Federal Reserve rate cut in September. Spot gold increased by 0.2%, reaching $3,380.61 per ounce as of 0052 GMT. U.S. gold futures experienced an increase of 0.2%, reaching a value of $3,434.30.

The dollar index experienced a decline for the third consecutive session on Tuesday, resulting in gold becoming more accessible for holders of alternative currencies. In the interim, the yield on the benchmark 10-year Treasury note has declined to a three-week low. On Friday, U.S. President Donald Trump dismissed Erika L. McEntarfer from her position as commissioner of the U.S. Bureau of Labor Statistics, following the release of data indicating that employment growth fell short of expectations in the previous month. Mary Daly, President of the San Francisco Fed Bank, indicated on Monday that, in light of increasing evidence of a softening U.S. job market and the absence of persistent tariff-driven inflation, the moment for rate cuts is approaching.

The CME FedWatch tool indicates that traders currently assign a 94.4% probability to a rate cut in September. Gold, historically viewed as a refuge asset amid political and economic turmoil, generally performs well in a low-interest-rate context. SPDR Gold Trust, recognized as the largest gold-backed exchange-traded fund globally, reported an increase in its holdings by 0.18%, reaching 954.80 tonnes on Monday, up from 953.08 tonnes on Friday. Elsewhere, spot silver increased by 0.1% to $37.41 per ounce, platinum saw a gain of 0.1% to $1,330.17, while palladium experienced a slight decline of 0.1% to $1,204.87.