Gold hit a daily high in European trade and extended a steady rebound after a
modest dollar pullback, but remains capped inside the prior session's range as
elevated Fed rate-hike expectations and geopolitical risk support the dollar.
Traders are sidelined ahead of US nonfarm payrolls. CME FedWatch prices about a
64% chance of a September Fed hike and roughly an 85% chance of at least one
hike by year-end. Fed chair Kevin Warsh reinforced the 2% inflation target in
remarks Wednesday. Technically, gold trades below the 100-period moving average,
reinforcing a near-term bearish bias.
