- US CPI and PPI data due this week
- Iran ties Hormuz reopening to US concessions on several demands
- Markets dial back rate hike bets after Friday's jobs data
Aug 10 (Reuters) - Gold held steady on Monday after prices hit a seven-week high in the previous session, while markets looked to U.S. inflation data for fresh clues on the Federal Reserve's interest rate path.
Spot gold was little changed at $4,346.85 per ounce, as of 0637 GMT. Prices hit their highest since June 17 on Friday after weak U.S. nonfarm payrolls data.
U.S. gold futures rose 0.2% to $4,406.80 on Monday.
"The weak U.S. jobs data reduced fears of an imminent rate hike and gave the metal a spark. This looks like a natural stabilisation - I expect gold to remain supported above the $4,300 level in the near term," said Tim Waterer, chief market analyst at KCM Trade.
Data showed the U.S. economy unexpectedly shed jobs in July and previously reported job gains for the prior two months were revised sharply lower.
Futures markets flipped the odds of a rate hike at the September 15-16 Federal Open Market Committee meeting from likelier-than-not to a worse-than-even chance.
A lower interest rate environment boosts the attractiveness of gold against income-generating assets, as bullion earns no interest.
Key U.S. data scheduled for release this week include the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday.
"Soft readings would strengthen the case for a rate hold and clear a path for further upside in gold... Middle East uncertainty remains a lingering risk factor, as any renewed escalation that drives oil prices up could quickly pressure the metal," said Waterer.
On the geopolitical front, Iran said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of Hormuz, but repeated that the U.S. must meet several conditions before the strategic waterway is reopened.
Spot silver rose 0.9% to $64.09 per ounce and platinum gained 0.6% to $1,754.65, while palladium slipped 0.3% to $1,374.50.
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu and Ronojoy Mazumdar
Source: Reuters