Gold edges up as softer crude tempers inflation concerns

Nov 9 (Reuters) - Gold prices edged higher on Monday as softer oil prices eased inflation concerns, though gains were capped by expectations that the Federal Reserve will keep US interest rates higher for longer following robust payrolls data.

FUNDAMENTALS

* Spot gold was up 0.2% at $4,073.59 per ounce by 0016 GMT, while US gold futures for December delivery also edged 0.2% higher to $4,082.30. Bullion logged a weekly gain of roughly 5% on Friday.

* US President Donald Trump said on Sunday he was highly unlikely to order more attacks on Iran as long as talks to end the conflict continued, even as both countries reported shipping disruptions in or near the Strait of Hormuz. Oil prices fell following the comments. O/R

* Meanwhile, US job growth accelerated in October and the unemployment rate fell to 4.1%, reinforcing expectations that the labor market remains resilient and keeping the Federal Reserve on track to raise interest rates in December.

* A stronger-than-expected US jobs report bolstered the case for further Fed interest rate hikes, which had lost some momentum amid a post-election stock market selloff and growing fears that weaker AI-driven demand could undercut the economy.

* Traders currently see a 79% chance that the Fed will raise rates in December, up from 71% prior to the payrolls data, according to CME's FedWatch tool.

* Higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.

* Adding to the global trend toward tighter monetary policy, the Bank of Japan is expected to raise interest rates in December and continue lifting borrowing costs next year toward 2%, according to former BOJ chief economist Seisaku Kameda.

* Separately, gold demand in India picked up at the start of a key festival on Friday as prices slid to a seven-month low, drawing back bargain hunters who stayed on the sidelines for months waiting for a correction.

* Among other metals, spot silver rose 0.9% to $52.32 per ounce, platinum gained 0.8% to $1,545.13 and palladium climbed 0.9% to $1,032.52.