Gold lackluster ahead of inflation data as oil prices rise

Among other metals, silver XAG= edged 0.3% higher to $66.3074 per ounce, platinum XPT= rose 0.6% to $1,837.72 and palladium XPD= slid 2.5% to $1,354.32.

Sept. 8 (Reuters) - Gold prices inched lower on Tuesday, as rising oil prices fueled inflation concerns and boosted expectations for a rate hike by the Federal Reserve in September, with investors awaiting U.S. inflation data for further clues on monetary policy outlook.

Spot gold XAU= fell 0.1% to $4,398.71 per ounce by 11:42 a.m. EDT (1542 GMT), while U.S. gold futures GCcv1 for December delivery dropped 0.7% to $4,443.60.

"Gold is range-bound because it is capped by a higher probability of raising interest rates, which continues to hinder momentum in the market," said Daniel Pavilonis, senior market strategist at Stone X.

Oil prices touched multi-week highs after Yemen's Tehran-backed Houthis attacked Saudi energy facilities and Tehran threatened the United States with "economic warfare." O/R

Brent crude neared the $100-per-barrel mark, touching $99.46, its highest level since July 24, fueling inflation worries.

The market continues to absorb the stronger-than-expected U.S. jobs report and await upcoming CPI and PPI data, while higher oil prices are stoking inflation concerns and supporting expectations for a September rate hike, said Peter Grant, vice president and senior metals strategist at Zaner Metals.

Spot gold fell as much as 2.4% on Friday after data showed U.S. job growth accelerated sharply in August while the unemployment rate held steady at 4.1%, reinforcing signs of resilience in the labor market.