Gold steadies as traders await US jobs data, monitor Mideast tensions

Gold prices stabilized on Tuesday as traders monitored Middle East tensions and awaited key US labor market data. Spot gold maintained its level at US$4,454.68 per ounce, after reaching its lowest point since August 19 the previous day. US gold futures for December delivery climbed 0.5% to US$4,503.70. Crucial US data expected this week includes job openings, the ADP employment report, and non-farm payrolls data, which will be closely examined for insights into labor market health and potential interest rate guidance.

Currently, traders estimate a 65% probability of a September US rate hike, according to the CME FedWatch Tool.

Gold experienced a decline of over three percent on Friday due to Federal Reserve Chair Kevin Warsh's statement that the central bank would require significant work if policymakers were not confident that inflation would decrease to 2%. While gold is often seen as a hedge against inflation, higher interest rates generally diminish its appeal by favoring income-generating assets.

In a separate development, US President Donald Trump expressed respect for Warsh and pledged to take necessary actions on interest rates. Meanwhile, tensions escalated due to Iran's retaliatory strikes against US military bases, disrupting an already economic-driven conflict. Among other precious metals, silver rose by 0.4% to US$66.77 per ounce, platinum increased slightly by 0.7% to US$1,802.67, and palladium surged 0.8% to US$1,367.25.