Gold prices edged lower on Wednesday early trade as a strengthening US dollar and Treasury yields weighed on the precious metal. Investors are closely watching for clues about the Federal Reserve's potential interest rate cut in September. Spot gold slipped 0.2 per cent to $2,385.60 per ounce, while US gold futures declined 0.3 per cent to $2,425.30. "A rebound in US Treasury yields and a firmer dollar translate to some downward pressures on gold prices this morning, as pockets of resilience in US economic data seem to prompt a reassessment of market recession concerns," said IG market strategist Yeap Jun Rong. Gold prices may find support from ongoing Middle East tensions and global recession concerns. The dollar index rose to 103.25, making gold more expensive for overseas buyers. Market expectations for rate cuts have shifted following the softer-than-expected jobs report last week. Investors are now pricing in nearly 105 basis points of cuts by the end of the year. However, there is a 65 per cent chance of a 50-basis point cut in September, according to the CME FedWatch tool. San Francisco Fed President Mary Daly expressed confidence on Monday that the economy is slowing but not falling off a cliff. Meanwhile, the US has warned Iran and Israel against escalating tensions in the Middle East. In other precious metals, silver edged up 0.1 per cent to $27.0561 per ounce, platinum rose 0.3 per cent to $915.20, and palladium gained 0.3 per cent to $877.24. Attribution: Reuters
