Gold staged a dramatic rally on Tuesday, pushing prices in the futures market to fresh two-week highs above $4,170. The advance of $75.50, or 1.85%, was notable, but the bigger story wasn't the size of the move — it was what drove it, marking an apparent reversal from the pattern that has governed gold trading in recent months.

Gold gained $72.30, or 1.80%, on Tuesday based on the most active August futures contract, marking the largest gain for the precious metal since July 2. Gold moved higher on hopes that a Middle East ceasefire may be forthcoming.

Gold is trading lower at the start of the week, even though prices are running a few dollars above today's opening level. Gold futures are currently showing a decline of $11.20, or 0.28%, with prices at the time of writing at $4,011.80 — roughly $6 above Monday's opening price of $4,005.60.

Gold rose on Friday, but will close with a weekly loss, as escalating U.S.–Iran tensions drove energy prices higher — fueling inflation fears and reinforcing expectations that U.S. interest rates will move higher still.

U.S. gold futures for August delivery settled up 1.08% at $4,023 on the day, but down $105 on the week.

There was a time — and not so long ago — when headlines like the ones we saw today would have sent gold sharply higher.

Today gold futures gained a modest $14.30, or 0.35%, progress for the bulls attempting to keep prices above the near-term bottom near $4,000. Today's increase brings gold futures to $4,066, but beneath the surface, when accounting for dollar weakness, sellers actually outnumbered buyers today.

Gold staged a forceful reversal on Tuesday, surging after softer-than-expected inflation data gave traders their first concrete reason in weeks to believe the Federal Reserve may step back from its hawkish posture.

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Gold edged lower on Friday, with spot gold declining 0.4% to $4,103.23 per ounce by 2:10 p.m. EDT, putting the yellow metal on course for a weekly loss of roughly 1.7%. U.S. gold futures for August delivery settled around 0.7% lower at $4,113.70.

Gold staged a solid recovery on Thursday, with spot prices gaining 1.3% to trade at $4,130.58 per ounce by 2:05 p.m. EDT, after Wednesday's decline took the metal to its lowest level since July 1. U.S. gold futures for August delivery settled 1.4% higher at $4,140.80.