Gold prices rise for third consecutive day in international market

Gold prices rose for a third consecutive day in the international market as investors adjusted their expectations regarding US interest rates. With the likelihood of a rate hike next month diminishing, interest in gold as an investment is growing, according to market analysts. Investors are also keeping an eye on the minutes from the latest Federal Reserve meeting.

On Tuesday, August 18, spot gold prices rose 0.2 percent to $4,424.28 per ounce at 1:30am GMT. US gold futures for December delivery also rose 0.2 percent to $4,480.90 per ounce.

Market analysts believe the reduced likelihood of a US rate hike next month is driving investors toward gold. Lower or unchanged interest rates typically increase the appeal of non-yielding assets like gold. Expectations surrounding the Fed's monetary policy are therefore directly influencing the precious metal's market.

Adding to this is the weakening US dollar, which is hovering near multi-month lows against major currencies. A weaker dollar makes dollar-priced gold more affordable for investors using other currencies, creating opportunities for increased demand in the international market.

Market attention is now focused on the minutes of the latest Federal Reserve meeting. Investors expect to gain important signals about future monetary policy from the policymakers' discussions on interest rates, which could determine the next direction for the gold market.

Other precious metals also saw upward movement on that day. Silver rose 1.5 percent to $65.61 per ounce, platinum rose 0.7 percent to $1,759.72, and palladium rose 1.6 percent to $1,333.25 per ounce.