US communicated need to not escalate conflict to Iran and Israel
China39;s exports raise outlook concerns
U.S. dollar up 0.3

Aug 7 Reuters Gold prices held nearly steady on Wednesday as traders awaited further cues to gauge the size of the Federal Reserve39;s likely September interest rate cut.

Spot gold rose 0.24 to 2,395.00 per ounce, as of 0638 GMT. U.S. gold futures gained 0.14 to 2,435.10.

The dollar index rose 0.3, making the greenbackpriced bullion less affordable for overseas buyers. The 10year U.S. Treasury yield also ticked up.

It39;s a very noisy market at the moment, gold isn39;t moving as much on its own fundamentals due to volatility in broader markets, currency markets in particular, Kyle Rodda, a financial market analyst at Capital.com.

Traders have altered their rate cut expectations following the soft jobs report last week, with nearly 105 basis points of cuts anticipated by yearend.

However, markets are pricing in a 65 chance of the Fed cutting rates by 50 bps in September, CME FedWatch tool showed, compared with 85 a day ago.

Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low interest rate environment.

Gold will be supported by ongoing Middle East tensions and lingering global recession concerns, as markets await further economic data for clarity on U.S. conditions, said IG market strategist Yeap Jun Rong.

The United States has communicated to Iran and Israel that conflict in the…