Gold: XAU Pulls Back as Investors Take Profits.

Gold slipped below $4,400 an ounce on Tuesday, giving up earlier gains as investors took profits following a strong rally and weighed the potential impact of surging oil prices on inflation and the interest rate outlook. Earlier in the session, the yellow metal climbed to a two-month high as Chinese institutional investors continued to build bullion positions as a hedge against volatility across other markets, while gold-backed exchange traded funds in China posted their longest run of inflows in months. China’s central bank also stepped up gold purchases last month, adding about 20 tons to its reserves in July after buying around 15 tons in June, marking the largest monthly increase since October 2023. Meanwhile, uncertainty remained over a potential US-Iran agreement to end the war and reopen the Strait of Hormuz. Investors also awaited key US inflation data this week for fresh indications on the Federal Reserve’s policy outlook.