Gold edged lower in Asia on Wednesday as the dollar firmed and as investors took profits after downbeat US data propelled prices to a seven-week high in the previous session. "At the moment, the upside looks a little bit limited. We're seeing obviously some increase ... in net long-positioning in the market, but we're seeing some selling come through on the ETF side as well," said ANZ analyst Daniel Hynes, referring to exchange traded funds.
"So it's going to be difficult for gold to break out of (its) range for the next week or two." Spot gold had fallen 0.2 percent to $1,265.80 per ounce at 0638 GMT. The day before, it hit its highest since June 14 at $1,273.97. US gold futures for December delivery declined 0.6 percent to $1,272.30 per ounce.
The largest gold-backed exchange-traded-fund (ETF), New York's SPDR Gold Trust, saw holdings decrease by over 7 percent in the month of July, the biggest monthly outflow since April 2013. The fund has seen outflows of over 24 tonnes since July 21.
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