Gold eases to $4,430 amid Middle East tensions, US labour data in focus

Gold prices slipped on Tuesday as traders balanced geopolitical unrest in the Middle East against upcoming American employment figures, according to Mettis Global. Spot gold was 0.56 per cent lower at $4,429.89 an ounce at 09:36 am PST. The metal had been seeking direction ahead of data that could shape the Federal Reserve's rate path.

Gold had climbed to a high not seen in over three months last week, then fell more than 3% on Friday after Fed Chair Kevin Warsh said policymakers still had work to do if confidence that inflation would move toward the 2% target did not firm up. Probabilities from the CME FedWatch Tool put the chance of a US rate increase in September at 66%, with the figure reaching 89% in December. Higher yields on interest-bearing assets typically make the non-yielding metal less attractive, although it is traditionally seen as a hedge against inflation.

Politically, Trump said he respects Warsh and expects the Fed chief to act as necessary on rates. Trump also threatened more strikes on Iran on Monday, after the two sides traded direct attacks for the first time in a month. Oil prices climbed for a second straight session in response to the news. Silver rose 0.3% to $66.34 an ounce, platinum edged up 0.1% to $1,793.03, and palladium was unchanged at $1,356.75.