Gold Stuck Near Seven-Week Low Amid US Economic Data Uncertainty

Gold prices hovered near a seven-week low on Tuesday as investors remained cautious ahead of US economic data releases. Spot gold rose 0.4% to $4,130.58 per ounce, but still lingered close to its lowest level since August 5. US gold futures fell 0.2% to $4,162.20.

Geopolitical tensions and their potential impact on energy prices remain crucial for gold's performance, said Christopher Tahir, senior market strategist at Exness. He noted that continued tensions could keep energy prices elevated, while meaningful progress towards de-escalation could ease pressure.

The US Federal Reserve's interest rate decisions are also weighing on gold prices. Markets currently see a 72.5% probability of a Fed rate hike in October, compared to 57.6% a week ago. This increase in the likelihood of higher rates is making investors favour assets that generate interest over gold.

A slew of US economic data releases later this week will provide further insight into the country's economic performance and influence the direction of gold prices. Key metrics include consumer confidence, job openings, ADP employment, PCE, and nonfarm payrolls.