Spot gold prices continued to surge during Asian trading on Tuesday, briefly surpassing the $4,400 per ounce level for the third time in two days, gaining over 0.7%.

On Monday's early session, spot gold spiked vertically, breaking through $4,400 before extending gains to a high of $4,436, then quickly tumbling to around $4,356. During Monday evening trading, prices rallied again, reclaiming the $4,400 mark before closing slightly lower near $4,369.

On the news front, Pakistani Defense Minister Khawaja Asif revealed in an interview in Islamabad on Sunday that the United States and Iran are close to reaching a "peace agreement." Asif stated that "signals over the past two to three days indicate we are nearing some kind of arrangement," with the situation moving favorably toward a peaceful settlement.

A recent report from UBS forecasts that gold prices could surge to $5,000 per ounce by the first half of 2027. The Swiss bank noted that while short-term market conditions remain volatile, multiple long-term positive factors are solidifying the bullish case for gold's medium- to long-term trajectory.

Analysts pointed out that the U.S. Consumer Price Index data released on Wednesday evening Beijing time, along with Thursday's Producer Price Index report, will serve as key inflection points for market repricing. Surveys indicate a consensus expectation that U.S. July CPI will rise 0.1% month-over-month, with the annual rate slowing from 3.5% in June to 3.4%. Core CPI is expected to increase 0.2% month-over-month, with the annual rate declining from 2.6% to 2.5%. If actual data meets or falls below expectations, it would reinforce the narrative of "inflation being under control," reduce the likelihood of near-term rate hikes, and provide support for gold. Conversely, if data shows persistent inflation stickiness, it could revive rate hike expectations and put downward pressure on gold prices.