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Gold Trades Above Three-Month High On Fears Concerning U.S. Outlook

Published 02/17/2014, 05:32 AM
Updated 07/09/2023, 06:31 AM
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Precious-Gold inched up on Monday trading after posting its biggest weekly gain in six months last week, as the recent downbeat data from the United States has raised speculations the Fed would not rush in tapering stimulus.

Seen as a safe haven, gold has benefited from the weak economic data in the U.S. as well as emerging markets rout to a record 10 percent gain since the beginning of the year, following its 28 percent drop in 2013.

Over the previous eight week, the metal succeeded in achieving seven weekly gains, taking advantage of the drop in equity markets.

Last week, gold locked 4.2 percent advance after the breach of solid resistance of $1300, which helped the metal to rally to its highest in 3-1/2 months.

Fed Chairman Janet Yellen said she would cut stimulus in a gradual manner, while reminding that purchases are not on a preset course.

"These observations underscore the importance of considering more than the unemployment rate when evaluating the condition of the U.S. labor market," Yellen said this week to give a clear sign that the fall in unemployment rate near the bank’s threshold would be enough to reduce stimulus.

Meanwhile, the yellow metal is trading around $1322.23 an ounce after hitting a high of $1329.53 and a low of $1318.65.

The U.S. dollar remained vulnerable against a basket of major currencies to hover around 80.14 after hitting a low of 79.98, according to the dollar index.

Crude oil for April’s delivery edged up to trade around $100.75 a barrel after setting a high of $100.82.

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