Gold fluctuated as investors tracked an escalation of risk in the Middle East and digested weak US economic data.

If prices go up, Fed officials may be inclined to raise its benchmark rate, raising borrowing costs for businesses and consumers. That could lead to businesses to cut jobs, particularly in the high-growth tech sector, and force Americans to pull back on spending, which drives more than 70% of economic activity in the U.S.

Gold prices edged up on Tuesday as Iran-Israel tensions boosted safe-haven demand but a stronger dollar capped gains, while silver surged to a 13-year high. Spot gold rose 0.2% to $3,390.59 an ounce as of 0151 pm EDT (1751 GMT).