Gold prices eased on Wednesday as concerns that escalating Middle East tensions could drive inflation higher reinforced bets on elevated interest rates, with key U.S. inflation data due later this week.FUNDAMENTALSSpot gold was down 0.1% at $4,349.44 per ounce, as of 0040 GMT. U.S. gold ‌futures for ⁠December ⁠delivery were down 1% at $4,393.30.Markets are awaiting U.S. producer price index ​data due on Thursday, with consumer price index data set to follow ​on Friday.The Middle East war intensified with Iranian-backed Houthis in Yemen launching strikes on several Saudi cities, further embroiling a ​U.S. ally in the conflict, while ⁠U.S. forces ‌hit multiple Iranian oil tankers and Iran targeted ​a U.S. ​base in Jordan.Brent crude prices jumped ⁠for a fourth straight session. Rising crude prices tend ​to put upward pressure on inflation, as ​higher energy costs filter through the broader economy.According to the CME FedWatch Tool, a majority of traders expect the Federal Reserve to raise interest rates at its upcoming policy meeting.Although gold is widely regarded as an inflation hedge, ‌elevated rates weigh on the appeal of non-interest-bearing bullion.Meanwhile, the Bank of England will hold ​Bank Rate at ​3.75% for the ⁠rest of the year and through at least mid-2027, according to a Reuters poll of economists who still judge inflation is ​not strong enough for a majority of policymakers to vote for higher borrowing costs.Among other metals, spot silver was down 0.1% at $65.84 per ounce, platinum rose 0.6% at $1,824.53 and palladium fell 0.2% to $1,345.83.DATA/EVENTS (GMT)0130 China PPI, CPI YY Aug