Gold held above a three-week low on Wednesday as the dollar nursed losses, but prices remained range-bound as traders waited for direction from the Federal Reserve on the timing of a US interest rate hike. Spot gold had edged up 0.1 percent to $1,122.50 an ounce by 0237 GMT, above a three-week low of $1,116.20 reached earlier in the week. The metal snapped a four-day losing streak on Tuesday, buoyed by a softer dollar.
With Friday's US payrolls data failing to provide clarity on the timing of the Fed's first interest rate rise in nearly a decade, markets are now eyeing the US central bank's next policy meeting on September 16-17 for clues. "Gold looks likely to trade a relatively tight range prior to the FOMC meeting next week," said James Gardiner, a precious metals trader at MKS Group, referring to the Federal Open Market Committee. The $1,116 level is a key level of support on the downside, while resistance is at $1,126-1,127, Gardiner said.