Gold holds near $4,480 as dollar weakness supports early trade

Gold edged higher in early trade, supported by a slightly weaker dollar that reduced the cost of the precious metal for international buyers.

"Gold is finding support near $4,480 per ounce, with resistance likely at $4,555," Manoj Kumar Jain, a bullion market analyst, said.

COMEX gold traded at $4,483.30 per ounce as of 2:30 p.m. IST, down $36.60 or 0.81 percent from the prior close after paring earlier gains. The dollar index edged lower, making the dollar-denominated commodity less expensive for holders of other currencies. COMEX silver fell 1.3 percent to $74.555 per ounce.

Gold's ability to hold above $4,480 will be tested in coming sessions, with traders watching for further dollar moves and economic data releases that could influence the Federal Reserve's policy path.

In the Indian market, 24-carat gold held steady at Rs 1,60,000 per 10 grams in the Sarafa market, while silver slipped Rs 500 to Rs 2,72,000 per kilogram. The IBJA gold 999 rate fell Rs 1,032 to Rs 1,55,264 per 10 grams, reflecting the decline in international prices.

Gold at current levels is about 15 percent below its all-time high, with the metal having gained more than 20 percent over the past 12 months as central bank buying and geopolitical uncertainty supported demand. The next major catalyst for gold prices will be the U.S. nonfarm payrolls report, which could provide further clues on the direction of interest rates.

This article is for informational purposes only and does not constitute investment advice.