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

September 01, 2026 (MLN):  Gold prices eased on Tuesday, as investors weighed Middle East tensions against key US labour market data due later this week that could shape the Federal Reserve's monetary policy path.

Currently, spot gold is down 0.56% to $4,429.89 an ounce as of [09:36 am] PST, according to data reported by Mettis Global.

Markets are looking ahead to a batch of US data this week, including job openings, the ADP employment report and nonfarm payrolls, all of which will be scrutinized for signs of labor market health and their bearing on the interest rate outlook, according to CNBC.

The pullback follows a sharp reversal last week, when spot gold had scaled a more than three-month high before sliding over 3% on Friday after Fed Chair Kevin Warsh said the central bank would still have work to do if policymakers fail to gain confidence that inflation is on track toward the 2% target.

According to the CME FedWatch Tool, traders currently price in a 66% probability of a US rate hike in September, rising to 89% by December.

Higher rates tend to weigh on gold, a non-yielding asset, by increasing the relative appeal of yield-bearing instruments even as the metal is traditionally viewed as an inflation hedge.

On the political front, President Donald Trump said he holds a lot of respect for Warsh and that the Fed chief will do what he has to do on interest rates.

Separately, President Trump threatened further strikes against Iran on Monday following the first direct exchange of attacks between the two sides in a month, escalating a conflict that had recently taken more of an economic than military shape. Oil prices rose for a second consecutive session on the news.

Among other precious metals, spot silver gained 0.3% to $66.34 per ounce, platinum edged 0.1% higher to $1,793.03, while palladium was flat at $1,356.75.

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