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Gold rebounds from 3-month maximum
On Wednesday, gold dived from a three-month maximum because weakness in the common currency and pound pushed the greenback to a nine-week peak.
On the Comex exchange, December delivery gold futures dived by 0.10% being worth $1,232.20 a troy ounce, rebounding from $1,237.80 hit on Tuesday against the backdrop of escalating geopolitical tensions.
Tracking the purchasing potential of the major US currency against an array of its rivals the USD index surged by 0.02% showing 95.02.
Greenback-denominated assets, including the yellow metal are sensitive to fluctuations in the value of the America dollar.
The common currency declined reacting to data disclosing that euro zone private sector activity rallied at the slowest tempo for over two years in October due to the fact that an export-led deceleration had an impact on the service sector.
The yellow metal was backed by ongoing fear over the influence of duties and trade clashes on the world’s economy.
Further safe haven support arose from everlasting tension over the death of Saudi reporter Jamal Khashoggi, who vanished having entered the Saudi consulate on October 2.
Another source of geopolitical clashes came from Italy’s controversial budget, recently rejected by the European Commission. That’s the first time the European bloc didn’t agree to accept a EU member’s spending plans.
Besides this, investors also waited for Friday’s GDP report anticipated to disclose that American economic surge speeded down in the third quarter from the second quarter, when it rallied at its fastest tempo for four years.
In addition to this, silver futures managed to rally by 0.64% hitting $14.750 a troy ounce.
As for palladium futures, they declined by 1.04% showing $1,111.10 an ounce. Furthermore, platinum futures declined by 0.41% coming up with an outcome of $832.00.
Copper surged by 0.66% being worth $2.765 a pound.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.