Gold Steadies Amid US Jobs Data and Mideast Tensions
Gold prices steadied on Tuesday as traders took stock of Middle East tensions and awaited key US labour market data due this week. The release of job openings, the ADP employment report, and nonfarm payrolls data will provide clues on the health of the labour market and interest rate outlook.
The CME FedWatch Tool shows a 65% chance of a September US rate hike. This has weighed on gold prices, which fell over 3% on Friday after Federal Reserve Chair Kevin Warsh said the central bank will 'have work to do' if policymakers don't get confidence that inflation is heading down to 2%. Warsh's comments were seen as dovish, but they had a negative impact on gold.
Meanwhile, US President Donald Trump threatened further strikes against Iran, raising tensions in the region. This has had little immediate impact on gold prices, which remain steady at $4,454.68 per ounce for spot gold and $4,503.70 for December delivery US gold futures.