A break below $1,806 could cause a fall to $1,784 while a break above $1,841 could confirm the continuation of the wave c towards the $1,869-$1,897 range
Non-yielding gold, which is also seen as a safe investment during uncertain times, tends to fall out of favour among investors when interest rates rise.
Spot gold was little changed at $1,778.01 per ounce by 12:22 am EDT (1622 GMT), giving up some gains from earlier in the session as the dollar recouped initial declines.
The softer dollar, down 0.1pc, reduced gold's cost for holders of other currencies. Markets broadly shrugged off U.S. PMI data showing factory activity at a record high in June.