MTECHTIPS;-Gold steadies below seven-week high as U.S. data awaited

MTECHTIPS;-Gold steadies below seven-week high as U.S. data awaited

MTECHTIPS-Gold steadied on Thursday, hovering below Tuesday’s seven-week high, as investors awaited U.S. jobs data for further clues on the outlook for interest rates. Gold rallied through most of July as the dollar fell on reduced expectations for a third U.S. rate increase this year. Inflation has been contained even though the labor market appears to be in its best shape in many years and despite double-digit U.S. earnings growth in the second quarter. Reduced rate rise expectations tend to weaken the dollar, making dollar-priced gold cheaper for non-U.S. investors. The dollar fell against the yen, euro and Swiss franc, after weaker-than-expected U.S. services sector data worried investors and stoked doubts that the Federal Reserve would raise interest rates again in 2017. USD/ gold XAU= was 0.15 percent higher at $1,268.15 an ounce by 2:02 p.m. EDT (1802 GMT), not far from Tuesday’s seven-week high of $1,273.97. In early Asian trade, it fell $6.20 within one minute to the session low of $1,258.20 but quickly recovered. “The dollar is weak so there’s a little bit of spillover effect from that,” said Eli Lafayette, senior market strategist for brokerage RJO Futures in Chicago, referring to a source of support for gold prices

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