Gold Holds Ground Amid Middle East Turmoil, Labor Market Reports in Focus

Gold prices held steady despite Middle East tensions and uncertainty over US-Iran talks. The precious metal rose 0.2% to $4,061.96 per ounce by 0650 GMT, with U.S. gold futures increasing 0.7% to $4,118.30.

The labour market reports due this week will provide clues on the Federal Reserve's interest rate trajectory. A weak job market could pressure the US dollar and boost gold prices, according to Ajay Kedia, director at Mumbai-based Kedia Commodities.

U.S. President Donald Trump said talks with Iran were underway, warning of a 'last chance' for Tehran to sign a good deal. However, Iran denied any negotiations were being held or planned. The conflict has driven up energy costs and stoked inflation fears, which could prompt central banks to raise interest rates.

The Federal Reserve Bank of New York President John Williams remains optimistic that inflation pressures are on track to ease gradually. However, if they don't, the US central bank will not hesitate to respond with rate hikes.