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Gold firms on subdued $

August 05, 2021 00:00:00

Gold prices ticked higher on Wednesday on a flat dollar, although gains were kept in check ahead of the US jobs data which is seen as pivotal to the Federal Reserve's monetary policy strategy, reports Reuters.

Spot gold rose 0.2 per cent to $1,812.66 per ounce by 0834 GMT on the day, while US gold futures were up 0.2 per cent to $1,817.50.

Gold has "very little direction" ahead of the jobs data and "if US yields continue on their downward track, it's likely to head back towards the recent peaks at $1,835", CMC Markets UK's chief market analyst Michael Hewson said.

Hewson said a break above technical resistance at $1,835 could trigger a leg higher toward $1,870 for gold.

Buoying gold's appeal by making it cheaper for those holding other currencies, the dollar index was broadly flat.

"The boost for gold is likely driven in part by hedging as traders cover some of their exposure to stock markets," ActivTrades technical analyst Pierre Veyret said in a note.

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