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Global gold prices hold steady ahead of Fed minutes

| Updated: October 25, 2017 01:51:51


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Gold prices were stable on Wednesday as the US dollar held steady, with investors waiting for minutes from the US Federal Reserve's latest meeting for clues on the outlook for potential rate rises.

Spot gold was unchanged at $1,287.36 an ounce by 0709 GMT, reports Reuters.

US gold futures for December delivery eased 0.3 per cent to $1,290.50 per ounce.

The dollar wavered on Wednesday, ahead of the release of the minutes from the Fed's September policy meeting later in the day, while the euro held firm as political tensions over Catalonia receded slightly.

Markets are widely expecting the US central bank to raise rates in December, for a third time this year.

Gold is highly sensitive to rising interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar in which the metal is priced.

Spot gold may retrace to support at $1,281 per ounce before resuming its rally towards resistance at $1,299, said Reuters technical analyst Wang Tao.

Silver price rose 0.2 per cent to $17.10 an ounce, having hit a three-week high in the previous session.

Platinum was up 0.2 per cent at $930.50 an ounce and palladium was trading 0.3-per cent higher at $936.25 an ounce.

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