Gold hits two-month high as Fed rate-hike bets fade

Gold extended its advance after posting its largest one-week gain since January in the first week of August. The metal touched a fresh two-month peak near $4,450 as markets continued to reduce bets on another Federal Reserve interest rate hike.

The report notes that a Middle East stalemate is keeping bullish potential in check, limiting the scope for further upside despite the recent rally. Traders are watching Fed expectations and geopolitical developments for the next directional cue.