Gold Prices Steady Amid Middle East Tensions and Fed Fears

Gold prices held steady on Tuesday as traders weighed Middle East tensions and awaited crucial US labour market data due later this week.

The data, which includes job openings, the ADP employment report, and nonfarm payrolls, will provide key clues about the labor market's health and influence expectations for Federal Reserve monetary policy.

US gold futures edged up 0.1% to $4,485.30 per ounce, while spot gold remained down 0.3% at $4,437.10 per ounce, hitting its lowest level since August 19.

IG market analyst Tony Sycamore attributed the pressure on gold to Fed Chair Kevin Warsh's hawkish Jackson Hole speech and fresh tensions in the Strait of Hormuz, which have boosted oil prices and raised inflationary expectations.