Gold Prices Edge Up but Remain Near Seven-Week Low Ahead of US Economic Data

Gold prices inched up on Tuesday but remained close to a seven-week low as investors awaited US economic data and weighed concerns over interest rates. The Federal Reserve's potential decision to keep rates higher for longer has kept gold vulnerable to losses.

The spot price of gold rose 0.4% to $4,130.58 per ounce at 0407 GMT, but the metal remains near its lowest level since August 5. US gold futures fell 0.2% to $4,162.20.

Geopolitical tensions will continue to be crucial for gold prices, as they can keep energy prices and yields elevated. However, meaningful progress towards de-escalation could ease pressure on the metal. Oil prices rose for a second consecutive session due to concerns over Middle East supply disruption.

Markets currently see a 72.5% probability of a Fed rate hike in October, according to the CME's FedWatch Tool, up from 57.6% a week ago. This has led to expectations that central banks will remain restrictive and keep yields elevated, leaving gold vulnerable to further losses.