Gold Prices Dip Amid Middle East Tensions and Anticipation of Labor Data

Gold prices dipped to $4,429.89 an ounce on Tuesday as investors weighed Middle East tensions against key US labor market data due later this week.

The data, including job openings, the ADP employment report and nonfarm payrolls, will be scrutinized for signs of labor market health and their bearing on the interest rate outlook.

Last week's sharp reversal saw spot gold scale a more than three-month high before sliding over 3% after Fed Chair Kevin Warsh said the central bank would still have work to do if policymakers fail to gain confidence that inflation is on track toward the 2% target.

The CME FedWatch Tool indicates a 66% probability of a US rate hike in September, rising to 89% by December. Higher rates tend to weigh on gold, making yield-bearing instruments more appealing even as the metal is traditionally viewed as an inflation hedge.