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Or sign-in if you have an account.Gold has rallied above the key US$4,000-an-ounce support threshold in recent weeks, with renewed investor appetite for the precious metal backed by an increase in Fed purchases. Photo by DAVID GRAY/AFP via Getty ImagesGold hovered near a two-month high as traders weighed hopes for a United States-Iran deal to reopen the Strait of Hormuz while awaiting a key U.S. inflation report that could provide fresh clues on the Federal Reserve’s appetite for an interest-rate hike.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorBullion rose as much as one per cent, erasing earlier losses. U.S. crude oil inched lower to around US$82 a barrel after Pakistan signalled a potential agreement that could reduce tensions roiling energy markets. Easing energy prices could reduce pressure on the Fed to raise interest rates to curb inflation. Less aggressive monetary tightening is typically supportive of gold, which pays no interest.Meanwhile, traders are now turning their attention to U.S. inflation data due Wednesday. The closely watched consumer price index is seen rising 0.1 per cent in July following a 0.4 per cent decline in the prior month, according to the median projection in a Bloomberg survey of economists. In the wake of Friday’s weak jobs report, a moderation in price growth may help alleviate some of the inflation anxiety at the Fed.However, the likelihood of a rate hike by the U.S. central bank — a negative for gold, which doesn’t pay interest — will build if higher energy prices exert more inflationary pressure. Pakistan’s upbeat assessment came after U.S. President Donald Trump toughened his stance on Monday, saying Tehran should pay reparations for those killed in attacks linked to the Islamic Republic as well as in domestic protests.To continue its recent rally, gold needs to hold between US$4,360 and US$4,370 an ounce, “where we saw some local peaks back in June,” said Ole Hansen, head of commodity strategy at Saxo Bank AS. “Otherwise, some consolidation can be expected with the headwinds from oil, yields and the dollar,” he said. “Longer-term-focused traders want to see a break back above the 200-day moving average before getting involved.”Gold has rallied above the key US$4,000-an-ounce support threshold in recent weeks, with renewed investor appetite for the precious metal backed by an increase in central bank purchases. Despite those gains, bullion remains about 17 per cent below levels before the Iran war began in late February.Spot gold rose 0.1 per cent to US$4,395.22 an ounce at 10:43 a.m. in New York. Silver dropped one per cent. Platinum and palladium declined.—With assistance from Robin Paxton. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.