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Gold Edges Lower As Dollar Firms On Fed Rate Repricing

Gold prices edged lower on Tuesday, the U.S. Treasury yield curve flattened and the U.S. dollar scaled to multi-week highs as markets repriced chances of Fed easing.

Spot gold slid 0.4 percent to $1,390.18 per ounce while U.S. gold futures were down 0.6 percent at $1,392.05 an ounce.

Caution prevailed ahead of Fed Chairman Jay Powell's two-day testimony to Congress on Wednesday and Thursday, with markets waiting to see whether the language will be dovish enough after the release of a stronger-than-expected jobs report.

Economists had been nearly certain the Federal Reserve would cut interest rates in coming weeks. But Friday's robust U.S. jobs data tempered expectations the U.S. central bank will deliver a large rate cut.

The Federal Reserve meets on July 30 and 31, with analysts expecting that Fed officials will probably think the labor market is too hot to handle rate cuts.

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