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(Bloomberg) — Gold advanced through $4,400 an ounce ahead of a key US inflation report that could provide fresh clues to the Federal Reserve’s appetite for an interest-rate hike.

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Bullion edged higher in early trading, after adding 3.6% over the previous two sessions. Technical buying was spurred by the metal’s ascent through the 100-day moving average on Monday, another sign of recovery after the emergence of dip-buyers and greater inflows from gold-backed exchange-traded funds in China.

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Traders are turning their attention to the latest US inflation data due Wednesday. The closely-watched consumer price index is seen rising 0.1% in July following a 0.4% decline in the prior month, according to the median projection in a Bloomberg survey of economists. In the wake of Friday’s weak jobs report, a moderation in price growth may help alleviate some of the inflation anxiety at the Fed.

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However, pressure on the US central bank to raise rates — a negative for gold, which doesn’t pay interest — will build if energy prices remain high. Oil held a three-day gain on Tuesday after President Donald Trump made sweeping new demands on Iran, clouding the outlook for a deal to reopen the Strait of Hormuz. The hardening stance makes it less likely that Tehran and Washington will agree any immediate pact to end the months-long war.

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The Fed’s Bank of Cleveland President Beth Hammack said it’s possible a number of rate hikes may be needed to bring inflation down to the central bank’s 2% target. Hammack was one of three Fed officials who dissented against last month’s decision to keep borrowing costs steady.

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Gold has rallied above the key $4,000-an-ounce support threshold in recent weeks, with renewed investor appetite for the precious metal backed by an increase in central bank purchases. Despite these recent gains, bullion remains about 17% below levels before the Iran war began in late February.

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Spot gold advanced 0.1% to $4,395.64 an ounce at 7:30 a.m. in Singapore. Silver was steady at $65.75 an ounce. Platinum and palladium were little changed. The Bloomberg Dollar Spot Index, a gauge of the US currency, fell marginally after gaining 0.2% in the previous session.

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