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Gold Steadies Near USD1,270 After 11-month Lows

September 3, 2014

WASHINGTON (Alliance News) - Gold prices are slightly higher Wednesday morning, lifted by some bargain hunting after Tuesday's sharp fall.

However, strong equity markets amid conflicting reports about a ceasefire agreement between Russia and Ukraine are limiting the bullion's gains.

Gold futures for December delivery are up USD4.70 or 0.37% at USD1,269.70 an ounce, rising from an 11-month low.

On Tuesday, gold futures ended down USD22.4 or 1.7% at USD1,265.00 an ounce, with some upbeat US economic data, a stronger dollar amid expectations of fresh monetary stimulus by the European Central Bank contributing to the decline.

The manufacturing activity in the US grew at an accelerated pace in August, data released by the Institute for Supply Management showed Tuesday. A report from the Commerce Department showed construction spending to have rebounded more than expected in July.

Silver for December is up USD0.056 or 0.29% at USD19.208 an ounce. Meanwhile, copper is down USD0.16 or 0.51% at USD3.139 per pound, weighed by weak Chinese economic data.

Traders are looking ahead to US private sector payrolls data for August. The ADP will release the data at 8:15 am ET.

At 10 am ET, the Commerce Department will release its factory orders report for July. Economists expect a 10.9% increase in factory orders in July. At 2 pm ET, the Federal Reserve will release its Beige Book report.

On Thursday, the European Central Bank will announce its monetary policy. Hopes about fresh stimulus from the European Central Bank have risen after eurozone retail sales declined by a more than expected 0.4% in July.

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Source: Alliance News

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