Gold extends gains on lower oil and softer dollar, markets await US jobs data

Spot silver XAG= gained 1.9% to $60.64 per ounce and platinum XPT= climbed 1.4% to $1,758.35, its highest level since mid-June. Palladium XPD= rose 0.9% to $1,365.62, up for a second straight session.

Traders are now pricing in a 59% probability of a Federal Reserve interest rate hike at the central bank's Sept. 15-16 meeting, down from 67% a day earlier.

Gold tends to lose its appeal in a high interest-rate environment despite its status as an inflation hedge, as it yields no interest.

Federal Reserve Bank of Philadelphia President Anna Paulson said she was keeping an "open mind" about what lies ahead for monetary policy in an outlook that could call for higher rates.

Traders were looking ahead to the ADP employment report due later in the day and the July payrolls report scheduled for Friday.

Analysts at TD Securities said in a note that they expect gold to remain range-bound near current levels.

Aug. 5 (Reuters) - Gold rose for a third straight session on Wednesday, helped by a softer dollar and lower oil prices, while investors awaited U.S. jobs data for clues on the interest-rate outlook.

Spot gold XAU= was up 1.3% at $4,127.04 per ounce, as of 0253 GMT. U.S. gold futures GCcv1 rose 0.8% to $4,184.40.

The U.S. dollar remained subdued, making greenback-priced metals more attractive to holders of other currencies.