Gold hits one-week high

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By Daksh Grover

BENGALURU- Gold prices climbed to a one-week high on Tuesday, buoyed by a softer US dollar, while the market awaited comments from Federal Reserve officials for cues on the US interest rate outlook.

Spot gold rose 0.4 percent to $2,623.54 per ounce, the highest since Nov. 12. Prices rose 2 percent on Monday.

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US gold futures gained 0.5 percent to $2,627.60.

The US dollar pulled back as profit-booking kicked in after last week’s stellar rally. A weaker dollar makes bullion less expensive for buyers holding other currencies.

“Recent market movements are largely technical, influenced by an overbought US dollar,” said Kyle Rodda, financial market analyst at Capital.com.

The recent strong economic data has raised concerns on whether the Fed will continue to cut rates after 75-basis-points of reductions since September. Several Fed officials are due to speak this week.

Gold price move will be a reflection of any change in expectations about the December meeting, Rodda said, adding that any data or comments from officials pertaining to it will be relevant.  – Reuters

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