London — Gold prices held near seven-week highs on Wednesday after data showed fewer new jobs than forecast were created in the US in July, bolstering expectations that the Federal Reserve will be cautious about raising interest rates. Investors were looking ahead to the more comprehensive US non-farm payrolls report on Friday for a clearer indication of the Fed’s intentions. Gold is highly sensitive to rising rates because they lift bond yields, raising the opportunity cost of holding non-yielding bullion, and tend to boost the dollar, in which gold is priced. Spot gold was up 0.1% at $1,269.91 an ounce at 2.49pm GMT. It touched $1,273.97, the highest since June 14, on Tuesday, having risen nearly 6% from a low in early July. US gold futures were 0.2% lower at $1,276.50 an ounce. While weak employment data may dissuade the Fed from aggressive interest rate increases, gold is likely to come under pressure from the bank’s plans to shrink its balance sheet, said Mitsubishi analyst Jon...
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