PRECIOUS-Gold subdued as oil rises, investors await key US inflation data
GLD•Oil, labor data and Fed bets weigh on bullion
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 that 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 61% 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.
The U.S. dollar index softened, making greenback-priced bullion more affordable for buyers overseas. USD/
Investors look to PPI and CPI for policy clues
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.
Among other metals, silver XAG= edged 0.2% lower to $66.03 per ounce, platinum XPT= rose 0.1% to $1,828.50 and palladium XPD= slid 1.4% to $1,368.80.
Gold eases as oil prices revive inflation worries
US gold prices inched lower on Tuesday as a rise in oil prices reignited inflation fears, while investors remained cautious ahead of crucial data this week that could offer clues on the Federal Reserve's interest-rate path.
