Gold ticks up after hitting over 7-week low; US data in focus

Gold prices edged higher on Tuesday after hitting a more-than-seven-week low in the previous session, as investors watch for US economic data that could offer clues on the Federal Reserve's interest rate outlook. Spot gold rose 0.6% to $4,140.10 per ounce, as of 0856 GMT, after hitting its lowest level since August 5 on Monday. US gold futures gained 0.1% to $4,171.60. "Today's modest recovery looks like a rebound following yesterday's sharp sell-off, rather than a fundamental change in sentiment," ActivTrades Director and CEO Ricardo Evangelista said. Gold fell nearly 4% to as low as $4,110.55 per ounce on Monday, as a surge in crude oil prices gave way to increased expectations for the Fed to raise interest rates. Investors are now looking out for key economic data, including Wednesday's ADP employment data and the PCE data, in addition to remarks from a number of Fed policymakers. Oil prices rose for a second successive session amid lingering concern over Middle East supply disruption. Elevated oil prices can stoke inflationary pressures, potentially leading central banks to keep interest rates higher for longer. That tends to weigh on gold, as investors gravitate toward yield-generating assets. Markets currently see a 70% probability of a Fed rate hike in October and a 96% chance of an increase in December, according to the CME's FedWatch Tool. On the geopolitical front, US President Donald Trump said he had not offered Iran anything to end the war, rejecting media reports that cited US officials saying he was willing to ease sanctions and release frozen funds for "concrete" steps regarding Iran's nuclear programme. Among other metals, spot silver fell 0.5% to $60.66, platinum slipped 1.7% at $1,688.17, while palladium rose 0.6% to $1,221.87.