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Gold Futures Slip But Keep to One-Month Highs

0751 GMT – Gold futures soften as the U.S. dollar recoups some losses, though they remain at one-month highs. Futures are down 0.3% at $3,398.40 a troy ounce, but are up 1.1% on week after rallying on Monday on a slump in the dollar. Investor volumes in gold have picked up since the start of the week, with the precious metal emphatically breaking out of a tight trading range it has held since early July, Pepperstone's Chris Weston says in a note. For now, gold is taking its cues from the U.S. dollar, Weston says. Any U.S. dollar rallies should remain capped as the Aug. 1 U.S. tariff implementation deadline approaches and given central bank policy uncertainty due to the risk of an early shadow Federal Reserve chair nominee. This should be a boon for gold, Weston writes. (joseph.hoppe@wsj.com)
2343 GMT — Gold edges lower in early Asian trade on a possible technical correction after gold futures posted their best day in over a month on Monday. However, losses may be limited by lingering geopolitical tensions. Russia recently launched another wave of drone and missile strikes on Ukraine's Kyiv amid stalled cease-fire talks, while reaffirming its hardline conditions despite mounting international pressure, DHF Capital's Bas Kooijman says in an email. Also, tensions remain elevated in the Middle East, underpinning demand for safe-haven assets, the CEO and asset manager adds. Spot gold is 0.1% lower at $3,393.87/oz. (ronnie.harui@wsj.com)
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