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Gold fell by as much as 1.1 percent on Wednesday, weighed by the dollar’s rise, while hopes for a rapid economic recovery were boosted by optimism about a possible Covid-19 vaccine, which pushed investors towards high-risk assets.
By 1648 GMT, the spot price of gold was down 0.8 percent to $ 1861.96 an ounce. US gold futures also lost 0.8 percent to $ 1861.30.
“There are two factors against gold, strong stocks and a strong dollar right now,” said Bob Habercorn, chief market strategist at RJO Futures. It is difficult for gold to continue rising with these two markets rally.
“The search for safety in precious metals that we experienced last week after the American elections was faded by the news of the Coronavirus vaccine.”
The dollar rose 0.4 percent to its highest level in about a week, which took the lure of gold, as it increases the cost of the metal on holders of other currencies.
Silver fell 0.3 percent to $ 24.14 an ounce. Platinum fell 2.4% to $ 861.70 and palladium fell 5.2% to $ 2,325.58 an ounce.
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