FX.co ★ Gold Inches Higher On Dollar Weakness

Gold inched higher on Wednesday, the dollar eased, and bond yields continued to decline amid increased bets for a peak in U.S. interest rates.

Spot gold edged up 0.1 percent to $2,021.24 per ounce, while U.S. gold futures were up 0.1 percent at $2,038.65.

The dollar held steady while U.S. Treasury yields hovered close to a three-month trough as soft U.S. labor market data cemented views that the Federal Reserve is done raising rates.

Euro zone government bond yields hit multi-month lows after ECB official Isabel Schnabel told Reuters further interest rate hikes are "rather unlikely".

Germany's 10-year government bond yield, the benchmark for the euro area, traded down 0.5 basis point at 2.23 percent to hit a fresh 7-month low.

Reports on Eurozone monthly retail sales and U.S. ADP Non-Farm Employment Change along with a speech by Bank of England Governor Bailey may sway markets later in the day.

On Friday, the U.S. Labour Department is scheduled to release its closely watched monthly jobs report, which could have a significant impact on the outlook for interest rates.

Economists currently expect U.S. employment to increase by 185,000 jobs in November after an increase of 150,000 jobs in October. The unemployment rate is expected to hold at 3.9 percent.