Gold edges lower

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London

Gold fell on Tuesday after Federal Reserve officials sounded a hawkish note on interest rates at the weekend, boosting the dollar, while attention turned to U.S. payrolls data this week for further clues on the pace of rate hikes.

Fed Chair Janet Yellen said on Friday the case for higher rates was strengthening, though she gave little clarity on when it would move. Shortly afterwards Vice Chair Stanley Fischer suggested a hike was possible as soon as September.

Spot gold was down 0.3 percent at $1,319.47 an ounce at 0931 GMT, while U.S. gold futures for December delivery were down $4.50 an ounce at $1,322.50. The pace of rate hikes is heavily dependent on U.S. economic data.  Non-farm payrolls data due on Friday is seen as a key measure of the strength of the U.S. labour market, and could reinforce hawkish messages from Yellen and other Fed officials.