Gold slips on rate-hike bets; inflation data in focus

On the Middle East front, Iran said it will step up efforts to tackle problems created by U.S. sanctions that are crippling its economy, while a senior Iranian official warned of a "painful response" if it comes under further attack.

Among other metals, spot silver XAG= eased 0.6% to $65.80 per ounce, platinum XPT= lost 1.1% to $1,800.59 and palladium XPD= declined 0.5% to $1,394.00.

Sept 7 (Reuters) - Gold slipped on Monday as strong U.S. jobs data reinforced expectations for higher interest rates, while investors awaited key U.S. inflation reports due later this week for further clarity on the Federal Reserve's policy path.

Spot gold XAU= was down 0.6% at $4,402.86 per ounce, as of 0420 GMT, after falling 1% on Friday.

U.S. gold futures GCcv1 for December delivery were down 0.6% at $4,447.60.

Data on Friday showed U.S. job growth accelerated sharply in August while the unemployment rate held steady at 4.1%, suggesting an improvement in the labour market after recent struggles and keeping a rate increase this month on the table.

U.S. producer price index (PPI) data is due on Thursday, followed by consumer price index (CPI) data on Friday.

"The jobs number delivered a clear upside surprise and put some pressure on the metal, but it wasn't a complete slam dunk for a September rate hike. The real missing piece of the puzzle arrives this week with U.S. CPI," said Tim Waterer, chief market analyst at KCM Trade.

"A strong inflation print would reinforce expectations of a Fed hike, lift yields further and weigh more heavily on gold." US/

Traders are pricing in a 58.4% chance of a rate hike at the Fed's September 15-16 meeting, CME's FedWatch tool showed.