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The yellow metal has been firmly lower this week as a resurgent US dollar has taken the shine out of gold demand.
Earlier in the week, the USD saw renewed buying as the latest ISM Non-Manufacturing reading showed a recovery in the services sector over October.
Following the three-year lows hit in September, traders were relieved to see a strong recovery over the last month. This saw USD immediately higher. The data comes shortly after the Fed indicated a preference to keep rates on hold in the near term.
At last week’s FOMC meeting, the Fed cut rates for the third time this year. The bank noted that it will now revert to a data dependant stance while it monitors the progress of the economy. In the near term, any further data beats will likely drive USD higher, pulling gold down, as traders further reduce their easing expectations.
The ongoing US-China trade negotiations have also weighed on gold prices this week.
The market is more and more expectant of a deal going through this ...
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