Ammon News - Gold nudged higher on ​Tuesday as investors weighed mixed signals on potential U.S.-Iran talks and awaited ‌a series of U.S. labour market reports for clues on the Federal Reserve's interest rate trajectory.

Spot gold rose 0.2% to $4,061.96 per ounce by 0650 GMT. U.S. gold futures rose 0.7% to $4,118.30.

Reports on U.S. ​labour market due this week include job opening data later in the ​day, the ADP employment report on Wednesday and nonfarm payrolls figures on ⁠Friday.

"Gold is currently in a consolidation phase. If we see weakness in the job ​market, it could pressure the U.S. dollar and as result there will be gains ​in gold," said Ajay Kedia, director at Mumbai-based Kedia Commodities.

U.S. President Donald Trump said talks with Iran were under way, warning of a "last chance" for Tehran to sign a good deal, but Iran denied ​that negotiations were being held or planned.

The conflict has driven up energy costs and ​stoked inflation fears, which could prompt central banks to raise interest rates to keep price pressures ‌in ⁠check.

While gold is seen as an inflation hedge, higher rates tend to weigh on the metal as it yields no interest.

Traders currently price in a 65% chance of a rate hike in September after a divided Fed maintained the status quo at its last ​policy meeting.

If bets for ​a September rate-hike ⁠ease, it will support gold prices, Kedia said.

Federal Reserve Bank of New York President John Williams said he remained optimistic that inflation pressures ​are on track to ease gradually, but if they don't, ​the U.S. ⁠central bank will not hesitate to respond with rate hikes.

Citi said in a note that it expects gold prices to stagnate or even decline over the next month, before rallying ⁠to $4,500 in ​the fourth quarter and to $5,000 by the first ​half of next year.

Spot silver gained 1.2% to $58.88 per ounce, platinum firmed 1.3% to $1,648.97 and palladium rose 1.1% ​to $1,278.38.


Reuters