Gold futures opened at $4,446.90 per troy ounce on Tuesday, holding above $4,400 for a second straight day as the US-Iran standoff deepens. Prices have pulled back from a two-month high near $4,435 as traders await Wednesday's and Thursday's US inflation reports, which will shape the Federal Reserve's next move on rates.
Gold December futures opened at $4,446.90 per troy ounce on Tuesday, August 11, 2026, up 0.6% from Monday's closing price, holding above $4,400 for the second day in a row. The move comes even as the US and Iran become more entrenched in their respective demands, eroding the chances of a near-term end to the months-long war.
Rally stalls at key resistance
Earlier in the session, gold briefly brushed two-month highs near $4,435 before skidding towards $4,370, underlining a tough obstacle around the $4,400 area. The 100-day simple moving average sits in the same vicinity, pointing to a possible pause in the near week-long rally.
By afternoon in London, spot gold had dipped 0.3% to $4,377 an ounce, after touching $4,434.84 earlier in the session — its highest level since June 5. Investors are watching Wednesday's US inflation data closely for clues on where the Fed will take interest rates next.
Iran standoff adds pressure
The pullback in prices tracks a fresh escalation between Washington and Tehran. President Trump demanded compensation from Iran for damage caused over a 50-year period, complicating the standoff over the strait of Hormuz. According to the Guardian: "I think Iran should pay those damages."
As the US, Iran and Oman struggle to find common ground on reopening the strait of Hormuz, a rebound in oil prices is keeping inflation risks in focus. That dynamic has started to work in gold's favor as an inflation hedge rather than against it, and central bank buying stabilized in the second quarter, with China stepping up its purchases in July for the fifth straight month.
What comes next
A successful break above the 200-day moving average at $4,500 would be needed for a sustained rebound toward the $4,800 region. But bigger gains toward $5,000 remain challenging if the Fed were to start raising rates as early as September. Sticky inflation could instead lead the Fed to hold rates at current levels or raise them following its two-day meeting next month, which would typically weigh on precious metal prices.
Gold's opening price on Tuesday was up 9.8% from a week ago, 7.9% from a month ago, and 31.4% from a year ago. Traders now turn to Wednesday's and Thursday's inflation reports to gauge whether the metal's two-month high will hold.
Sources: Yahoo Personal Finance, Investing.com, The Guardian
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