Weaker US dollar supports gold prices as the market awaits further guidance from US inflation data.

1. In early Asian trading on Tuesday, spot gold once rose by 0.8% to $4,440.81 per ounce and is now trading near $4,423 per ounce. The US Dollar Index once fell by 0.2%, making gold priced in USD more attractive to buyers holding other currencies.2. The market is now focusing on the US inflation data to be released this week—Thursday's PPI and Friday's CPI—which will be the last batch of key economic data before the Federal Reserve's September meeting. Currently, the probability of a rate hike in September is about 60%. Deutsche Bank expects that, due to ongoing energy risks, the European Central Bank will raise rates by another 25 basis points in December, in addition to this week's hike.3. In terms of geopolitics, Iran has warned that if the United States attacks its assets again, it will retaliate, stating that energy infrastructure in the Gulf region (including US oil and gas interests) is in a vulnerable state. The uncertainty in the Middle East is providing some support for oil prices; overnight, oil prices hit a six-week high, keeping inflation concerns alive and supporting expectations of a rate hike by the Federal Reserve, while making gold bulls somewhat cautious.4. Société Générale stated: “Every signal we track from positioning, fund flows, and derivatives data continues to point in the same direction: the market is broadly bullish on gold.” The bank noted that the initial geopolitical shock has evolved into a broad increase in spot, futures, and options positions, with participants ranging from retail investors to professional fund managers and derivatives traders.