Gold Steadies Amid Middle East Tensions and Awaited US Economic Data

Gold prices steadied in spot trading at $4,055.39 per ounce, as investors monitored conflicting statements about potential US-Iran talks and awaited US jobs reports. Futures rose 0.6% to $4,055.10. Traders see a 65% probability of a rate hike in September. The Bank of Korea announced it would buy gold from local producers.

Gold prices steadied in spot trading at $4,055.39 per ounce by 00:42 GMT, as investors monitored conflicting statements about potential talks between the United States and Iran and awaited a series of US jobs reports for clues on the path of interest rates. US gold futures rose 0.6% to $4,055.10. US President Donald Trump said on Monday that talks with Iran are underway, warning that it represents a 'last chance' for Tehran to reach a good deal to end the five-month-old war, but Iran denied holding any negotiations or having plans for them. The conflict has raised energy costs and fueled inflation concerns, which could push central banks to raise interest rates. Traders currently see a 65% probability that the Federal Reserve will raise interest rates in September, after the bank decided to keep rates unchanged at its previous meeting. John Williams, President of the Federal Reserve Bank of New York, said he remains optimistic that inflation pressures are on a path to gradually recede. This week sees the release of several labor market reports, including job openings data due Tuesday, the jobs report Wednesday, and nonfarm payrolls Friday. Monday's data showed that US manufacturing activity rose in July to its highest level in more than four years. The Bank of Korea announced on Monday that it would buy gold from local producers to diversify its supply sources and increase its reserves. Among other precious metals, silver rose 0.1% to $58.24, platinum rose 0.4% to $1,633.88, while palladium fell 0.2% to $1,262.