Gold holds ground with Middle East turmoil, US jobs data in focus
GLD•Gold steadies as investors await U.S. labour data
Gold nudged higher on Tuesday as investors weighed mixed signals on potential U.S.-Iran talks and awaited a series of U.S. labour market reports for clues on the Federal Reserve's interest rate trajectory.
Spot gold XAU= rose 0.2% to $4,062.41 per ounce by 0504 GMT. U.S. gold futures GCv1 rose 0.7% to $4,117.50.
Reports on U.S. labour market due this week include job opening data later in the day, the ADP employment report on Wednesday and nonfarm payrolls figures on Friday.
"Gold is currently in a consolidation phase. If we see weakness in the job market, it could pressure the U.S. dollar and as result there will be gains in gold," said Ajay Kedia, director at Mumbai-based Kedia Commodities.
Middle East tensions and Fed outlook support bullion
U.S. President Donald Trump said talks with Iran were under way, warning of a "last chance" for Tehran to sign a good deal, but Iran denied that negotiations were being held or planned.
The conflict has driven up energy costs and stoked inflation fears, which could prompt central banks to raise interest rates to keep price pressures in check.
While gold is seen as an inflation hedge, higher rates tend to weigh on the metal as it yields no interest.
Traders currently price in a 65% chance of a rate hike in September after a divided Fed maintained the status quo at its last policy meeting.
If bets for a September rate-hike ease, it will support gold prices, Kedia said.
