Focus on nonfarm payrolls data due on Friday
Traders see 91 chance of 50 bps rate hike in December
Next resistance for gold at 1,7881,808 analyst

Dec 1 Reuters Gold prices extended gains for a third straight session on Thursday, as the dollar slipped after Federal Reserve Chair Jerome Powell said the U.S. central bank might scale back the pace of its interest rate hikes as soon as December.

Spot gold gained 8.3 in November, ending its sevenmonth losing streak, as investors cheered Powell39;s comments at the Brookings Institution.

Lower rates tend to boost the appeal of nonyielding gold.

But Powell also cautioned that the fight against inflation was far from over.

Spot gold rose around 1 to 1,785.60 per ounce by 1305 GMT. U.S. gold futures climbed 2.2 to 1,797.80.

Rival safehaven dollar fell 0.5 on the day, making gold less expensive for overseas buyers.

The band between 1,788 and 1,808 is a significant area of resistance and a break above would signal a further recovery in gold prices, said Ole Hansen, head of commodity strategy at Saxo Bank, adding gold could see some profittaking as it approaches that level.

Market participants now see a 91 chance of a 50basispoint hike at the U.S. central bank39;s upcoming December meeting.

Traders also took stock of news that top bullion consumer China could announce an easing of its COVID19 quarantine protocols in the coming days.

But Julius Baer analyst Carsten Menke said the rally post Powell39;s was outsized,…