Gold lingers near seven-week low ahead of US economic data

Gold steadied on Tuesday but stayed near a seven-week low, according to Business Recorder, as traders feared the Federal Reserve could keep borrowing costs high for longer. In early trade spot bullion barely moved from $4,124.57 an ounce, after sliding to its weakest point since August 5 in the previous session. US gold futures dropped 0.3% to $4,156.70.

Oil prices climbed for a second straight day on lingering worries about Middle East supply. Higher energy costs can feed inflation and push central banks toward tighter policy, which typically weighs on gold as investors favour yield-bearing assets. Markets priced a 70.3% chance of a Fed rate increase in October, per the CME FedWatch Tool. Fed Governor Lisa Cook expects inflation pressure to persist from AI-driven demand and higher oil, though she stopped short of signalling further hikes.

US and Iranian officials separately held talks with mediators in a fresh bid to halt the seven-month conflict, according to both sides. Exness strategist Christopher Tahir said geopolitical developments remain crucial for gold, since ongoing tensions may keep energy and yields high. Traders are also watching this week's US releases on vacancies, private payrolls and PCE inflation. Silver eased 0.6% to $60.62, platinum dropped 1% to $1,699.86 and palladium lost 0.5% to $1,209.08.