On Tuesday, spot gold rose slightly, approaching its highest level since May 20th. The speech by Federal Reserve Chairman Powell strengthened market expectations for a rate cut in September.

Yesterday, Powell stated that the three US inflation data for the second quarter of 2024 have "increased some confidence", indicating that inflation is continuing to return to the Federal Reserve's target.

IG market strategist Yeap Jun Rong said in an interview, "Powell continues to pave the way for the upcoming policy easing. The market has fully factored in the September rate cut, which may support the gold price trend during this period.

Lower interest rates reduce the opportunity cost of holding gold, as gold does not pay interest.

Meanwhile, Federal Reserve governors Christopher Waller and Adriana Kugler also plan to deliver speeches this week.

As of 6:28 Greenwich Mean Time on Tuesday, spot gold rose 0.35%, trading at $2,430.91 per ounce.

Yesterday, the price of gold rose to a high of $2,439.85 per ounce, the highest level since May 20th.

Gold futures for delivery in August rose 0.27% on the same day, trading at $2,435.45 per ounce.

In addition, silver futures for September delivery rose 0.37%, trading at $31.052 per ounce.

The US dollar index, which measures the relative strength of the US dollar against six other major currencies, rose 0.11% on Tuesday to 104.372.