Gold Edges Higher Amid Softer Dollar, Ahead of US Jobs Data

Gold prices edged higher on Wednesday due to a softer US dollar. The spot price of gold rose 0.1% to $4,081.09 per ounce as of 0040 GMT.

The decline in the dollar made dollar-priced gold more attractive to holders of other currencies. Investors are now awaiting key US jobs data for clues on the Federal Reserve's next monetary policy move.

Attention this week will centre on the US July payrolls report, due on Friday. The ADP employment report is also due later on Wednesday.

The recent spike in oil prices has sparked bets that the Fed might need to raise interest rates to keep inflation in check. Gold's appeal tends to wane in a high-rate environment despite its status as an inflation hedge.