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Gold Rises

Gold RisesGold Rises

Gold touched its highest in nearly two weeks on Tuesday, supported by a softer dollar and geopolitical tensions in Spain and North Korea, though gains were capped by expectations of another US interest rate increase, Reuters reported. The dollar index ran into some profit-taking but was still in reach of a 10-week high scaled on Friday when surprisingly strong US jobs data enhanced already high expectations that the Fed would raise rates in December. Spot gold was up 0.4% at $1,291.53 an ounce, having earlier touched its highest since late September at $1,291.82. US gold futures for December delivery climbed 0.7% to $1,294.20. Gold is highly sensitive to rising interest rates, which increase the opportunity cost of holding non-yielding bullion. Higher interest rates also tend to boost the US currency, making dollar-priced gold costlier for non-US investors. Reuters technical analyst Wang Tao sees spot gold still targeting $1,299 an ounce, having broken resistance at $1,281.

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