Gold Prices Slip as Traders Await US Jobs Data Amid Mideast Tensions
Gold prices remained subdued on Tuesday as traders assessed Middle East tensions and awaited key US labour market data due this week. Spot gold was down 0.3% at $4,437.10 per ounce by 0235 GMT.
The metal has been under pressure since Fed chair Kevin Warsh's hawkish Jackson Hole speech, which sparked fresh concerns about interest rates. Higher rates typically weigh on gold by boosting the appeal of yield-bearing assets.
US job openings, the ADP employment report and nonfarm payrolls data will be scrutinised for clues on labour market health and the interest rate outlook. Traders currently see a 66% chance of a US rate hike in September and an 89% probability in December, according to the CME FedWatch Tool.
The recent escalation of tensions between the US and Iran has also contributed to higher oil prices, raising inflationary expectations and putting downward pressure on gold. Oil prices rose for a second straight session after President Donald Trump threatened further strikes against Iran.