2021.09.0310:30:00UTC+00Gold Edges Higher On Weaker Dollar

Gold prices edged higher on Friday and the dollar slipped to a one-month trough as investors awaited the release of U.S. jobs data later in the day for important clues about the Fed's tapering timeline.

Spot gold edged up 0.2 percent to $1,813.08 per ounce, while U.S. gold futures were up 0.2 percent at $1,814.95.

Economists expect employment to jump by 750,000 jobs in August after surging by 943,000 jobs in July. The unemployment rate is expected to dip to 5.2 percent from 5.4 percent.

Fed officials have indicated inflation has reached their target but they need to see further improvement in the labor market before they begin tapering asset purchases and raising interest rates.

Fed Chair Jerome Powell said last week that signs of job growth could allow the central bank to dial back its extraordinary efforts to prop up the economy later this year.

"Labor market conditions are improving but turbulent," Powell said adding that the Fed will continue to monitor incoming data and adjust its policies as needed.

The dollar index languished near a one-month low, bolstering the bullion's appeal for those holding other currencies.