Precious-Gold edges higher as Fed hike bets fade, US inflation data in focus

On the geopolitical front, Iran said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of Hormuz, but reiterated that the U.S. must meet several conditions before the strategic waterway is reopened.

Spot silver XAG= rose 0.9% to $64.14 per ounce, while platinum XPT= fell 0.4% to $1,737.42, and palladium XPD= lost 1.2% to $1,360.75.

Gold inched higher on Monday after prices hit a seven-week high in the previous session, as weak U.S. jobs data tempered expectations for Federal Reserve rate hikes and investors look ahead to inflation data for fresh clues on the central bank's policy path.

Spot gold XAU= was up 0.1% at $4,345.09 per ounce, as of 0856 GMT. Prices hit their highest since June 17 on Friday after weak U.S. nonfarm payrolls data.

U.S. gold futures GCcv1 rose 0.1% to $4,404.80 on Monday.

"Gold prices continue to benefit from last week's positive momentum, following the disappointing U.S. jobs report and the resulting reduction in expectations of further Fed rate hikes," said ActivTrades senior analyst Ricardo Evangelista.

Data showed the U.S. economy unexpectedly shed jobs in July, while previously reported job gains for the prior two months were revised sharply lower, weakening expectations for a Federal Reserve rate hike next month.

Traders are now pricing a 44% chance of a rate hike in September, compared to 57% before the jobs report, according to the CME FedWatch Tool. FEDWATCH

A lower interest rate environment boosts the attractiveness of gold against income-generating assets, as bullion earns no interest.