Gold prices traded cautiously around $4,400 an ounce on Tuesday, caught between rising bets on a Federal Reserve rate hike and a softer dollar ahead of key US inflation data later this week. A further rise in oil prices also renewed inflation concerns. Oil extended gains to multi-week highs amid escalating Middle East tensions after Yemen’s Iran-backed Houthis attacked energy facilities and cities in Saudi Arabia, a key US ally. Meanwhile, Friday’s stronger-than-expected jobs report pointed to a strengthening labor market, prompting traders to price in about a 60% chance of a Fed rate hike at the September meeting. While gold is traditionally viewed as a hedge against inflation, higher interest rates tend to weigh on the appeal of the non-yielding asset. Investors now await producer price data on Thursday and consumer price figures on Friday for further clues on the Fed’s policy outlook.