Gold Prices Stable Amid Rate Hike Bets and Renewed Inflation Fears

Gold prices are holding steady at around $4,400 an ounce on Tuesday as investors wait for key US inflation data later this week. The precious metal is caught between rising bets on a Federal Reserve rate hike and a softer dollar.

The rise in oil prices to multi-week highs amid escalating Middle East tensions has renewed inflation concerns. Yemen's Iran-backed Houthis attacked energy facilities and cities in Saudi Arabia, a key US ally, leading to the increase in oil prices.

Friday's stronger-than-expected jobs report pointed to a strengthening labor market, prompting traders to price in about a 60% chance of a Fed rate hike at the September meeting. Higher interest rates tend to weigh on the appeal of gold as investors view it as a non-yielding asset.