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Gold prices remained subdued on Tuesday as traders assessed Middle East tensions and awaited key U.S. labour market data due this week that could shape expectations for Federal Reserve monetary policy.

Spot gold was down 0.3% at $4,437.10 per ounce by 0235 GMT, after hitting its lowest level since August 19 in the previous session.

U.S. gold futures edged up 0.1% to $4,485.30.

Key U.S. data this week include job openings, the ADP employment report and nonfarm payrolls data that will be scrutinised for clues on labour market health and the interest rate outlook.

Spot gold scaled a more than three-month high last week before tumbling more than 3% on Friday after Chair Kevin Warsh said the Fed will "have work to do" if policymakers don't get the confidence they need that inflation is heading down to 2%.

Gold has been pressured by "Fed Chair Warsh’s hawkish Jackson Hole speech, plus fresh tensions in the Strait of Hormuz which has brought with it higher oil prices and raised inflationary expectations," IG market analyst Tony Sycamore said.

"One hike in isolation should not be a game changer for gold. Two or three might be," he added.

Traders currently see a 66% chance of a U.S. rate hike in September and an 89% probability in December, according to the CME FedWatch Tool.

While gold is considered a hedge against inflation, higher rates typically weigh on the metal by boosting the appeal of yield-bearing assets.

U.S. President Donald Trump told reporters in the Oval Office that he has a lot of respect for Warsh and that "he'll do what he has to do" on interest rates.

Meanwhile, Trump threatened further strikes against Iran on Monday after the first exchange of direct attacks in a month, raising tensions in a conflict that had recently shifted into an economic standoff. Donald Trumpprices rose for a second straight session. [O/R]

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