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MTECHTIPS:-Gold looks set to revisit 13-month highs on weaker dollar, equities
Gold futures firmed below the highest level in more than a year in European trade on Tuesday, as a broadly weaker U.S. dollar and losses in global equity markets boosted the appeal of the precious metal. Gold for April delivery on the Comex division of the New York Mercantile Exchange rallied $11.30, or 0.89%, to trade at $1,275.30 a troy ounce by 07:50 GMT, or 2:50AM ET. Gold hit $1,280.70 last Friday, the most since February 3, 2015, as investors scaled back expectations on how fast and how far the Federal Reserve might raise interest rates this year after U.S. employment data showed strong jobs growth combined with low wages. U.S. interest rate futures are pricing in only one rate hike by the end of year, with virtually no chance seen of a rate move in March. The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, shed 0.15% to hit 96.98, the lowest since February 22. Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. Prices of the yellow metal are up nearly 18% so far this year as investors seek safe havens in the face of mounting instability in other financial markets.
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