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

Among other metals, spot silver XAG= gained 0.3% at $66.34 per ounce, platinum XPT= edged 0.1% higher at $1,793.03, while palladium XPD= was flat at $1,356.75.

Key U.S. data this week include job openings, the ADP employment report and nonfarm payrolls data that will be scrutinised for clues on labour market health and the interest rate outlook.

Spot gold scaled a more than three-month high last week before tumbling more than 3% on Friday after Chair Kevin Warsh said the Fed will "have work to do" if policymakers don't get the confidence they need that inflation is heading down to 2%.

Gold has been pressured by "Fed Chair Warsh’s hawkish Jackson Hole speech, plus fresh tensions in the Strait of Hormuz which has brought with it higher oil prices and raised inflationary expectations," IG market analyst Tony Sycamore said.

"One hike in isolation should not be a game changer for gold. Two or three might be," he added.

Traders currently see a 66% chance of a U.S. rate hike in September and an 89% probability in December, according to the CME FedWatch Tool.

While gold is considered a hedge against inflation, higher rates typically weigh on the metal by boosting the appeal of yield-bearing assets.

U.S. President Donald Trump told reporters in the Oval Office that he has a lot of respect for Warsh and that "he'll do what he has to do" on interest rates.