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Gold Edges Higher After Steep Fall

Gold prices inched higher on Monday after falling sharply in the previous session, as a robust U.S. jobs report dented hopes for a near-term interest rate cut by the Federal Reserve.

Spot gold rose 0.45 percent to $1,405.29 per ounce after falling over 1 percent on Friday to mark its first weekly decline in seven weeks. U.S. gold futures were up half a percent at $1,407.55 an ounce.

As hopes for big Fed rate cut fade, gold prices are receiving some support from global growth concerns and rising geopolitical tensions.

The U.S. dollar held near three-week highs ahead of Fed Chair Powell's mid-week testimony before Congress on monetary policy and the state of the U.S. economy as investors look for clarity on the central bank's policy plans for the coming months.

The minutes of the June FOMC meeting as well as closely-watched reports on consumer and producer price inflation due this week could also have an impact on perceptions of the likelihood of an interest rate cut.

Geopolitical tensions continue to be in focus after Iran said it will break a limit set on uranium enrichment under its 2015 nuclear accord with major world powers.

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