Hormuz Tensions, US Inflation Data Keep Gold Traders Cautious

The XAU/USD pair edged up at the beginning of the week as tensions in the Strait of Hormuz continued to escalate, keeping traders cautious.

The US Dollar Index (DXY) was up 0.14% at 99.75, while Gold price rose 0.50% to $4,352 after bouncing off daily lows of $4,316.

Investors are now eyeing the release of crucial US inflation data on Wednesday, which is expected to ease from 3.5% to 3.4% YoY for July's Consumer Price Index (CPI), and from 2.6% to 2.5% for Core CPI.