Gold prices finish higher to recoup most of the previous day's losses

Gold prices climbed on Tuesday to recoup most of the losses suffered in the previous session. "Rising inflation should help to support the precious metal as it is seen as an inflation hedge," said Fawad Razaqzada, market analyst at ThinkMarkets. Still, high inflation is not necessarily a good thing for gold if it means the Federal Reserve is going to tighten its belt, raising the federal funds rate, he said. August gold rose $4, or 0.2%, to settle at $1,809.90 an ounce after posting a loss of 0.3% on Monday.

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