Gold Prices Steady Amid Middle East Tensions and US Labour Market Data
Gold prices steadied on Tuesday as traders digested Middle East tensions and prepared for key US labour market data due this week. The Federal Reserve's monetary policy expectations will be closely watched, with a 65% chance of a September rate hike predicted by the CME FedWatch Tool.
The US gold futures for December delivery rose 0.5% to $4,503.70, while spot gold held steady at $4,454.68 per ounce. This comes after Federal Reserve Chair Kevin Warsh said the central bank would 'have work to do' if policymakers didn't get confidence that inflation was heading down to 2%. Gold is considered a hedge against inflation, but higher interest rates typically weigh on the metal.
US President Donald Trump's comments on Middle East tensions have added to market uncertainty. He threatened further strikes against Iran following the first exchange of direct attacks in a month, raising concerns about the conflict's impact on global markets.