Gold subdued as oil rises, investors await key US inflation data
GLD•Other precious metals
Among other metals, silver XAG= edged 0.1% lower to $66.08 per ounce, platinum XPT= rose 0.6% to $1,836.72 and palladium XPD= slid 0.4% to $1,387.43.
Inflation, rates and geopolitics remain in focus
On the geopolitical front, Yemen's Tehran-backed Houthis attacked energy facilities and cities in U.S. ally Saudi Arabia on Tuesday. Oil prices extended gains to multi-weeks highs. O/R
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%, suggesting an improvement in the labor market.
Traders are now pricing in about a 60% chance of an interest rate hike at the central bank's policy meeting, according to the CME FedWatch Tool, up from about 50% before the data.
Although gold is typically seen as an inflation hedge, higher interest rates tend to diminish non-yielding bullion's appeal to investors.
The U.S. dollar index softened, making greenback-priced bullion more affordable for buyers overseas. USD/
Investors now await U.S. producer price index data on Thursday and the consumer price index data on Friday for further clues on the Fed's monetary policy stance.
"The precious metal may struggle for firm direction from any inconclusive prints, given fluid market pricing and a Fed that lacks conviction,” Tzabouras said.
Gold eases as oil gains and traders await inflation data
Gold prices inched lower on Tuesday, as oil gained and investors hunkered down for key inflation data this week for clues on the Federal Reserve's interest rate path.
Spot gold XAU= fell 0.1% to $4,399.99 per ounce by 1024 GMT, after trading as high as $4,442.70 earlier in the session, while U.S. gold futures GCcv1 for December delivery dropped 0.7% to $4,444.50.
