Gold Holds Ground Amid Middle East Turmoil

Gold prices held steady despite escalating tensions in the Middle East and upcoming US labor market reports. The conflict between Iran and the US has driven up energy costs, sparking inflation fears that could prompt central banks to raise interest rates.

The Federal Reserve's next move is crucial for gold investors, as higher rates tend to weigh on the metal due to its lack of yield. According to Ajay Kedia, director at Mumbai-based Kedia Commodities, 'Gold is currently in a consolidation phase. If we see weakness in the job market, it could pressure the US dollar and as result there will be gains in gold.'

The upcoming labor market reports include job opening data later on Tuesday, the ADP employment report on Wednesday, and nonfarm payrolls figures on Friday. These reports are expected to provide clues on the Federal Reserve's interest rate trajectory.