Gold Stabilizes Above $4,100 as Rate Hike Odds Fall

Gold prices have held above $4,100 an ounce as a softer dollar and falling oil prices support bullion ahead of crucial US employment data.

Spot gold rose 1.4% to a two-week high of $4,133.83 on Wednesday, while US futures gained 1% to $4,191.90.

Traders reduced the probability of a September Federal Reserve rate increase to 59% from 67% a day earlier.

Natixis economists say that July's uncertainty has effectively been pushed into September, with two more inflation reports due before the September 15-16 meeting.

The Fed's decision on interest rates will have significant implications for gold, as an increase would raise the opportunity cost of holding non-yielding bullion and could revive dollar strength.