By Investing.com

03 January 2018

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Gold prices eased on Wednesday, pulling back from the previous days three month highs as the firmer dollar weighed.

Comex gold futures were trading at $1,315.70 a troy ounce by 04:36 AM ET (09:36 AM GMT). Prices rose as high as $1,322.90 on Tuesday, the strongest level since September 18, propelled higher by the weaker dollar.

Recent weakness in the dollar has supported gold prices by making the dollar-denominated metal cheaper for holders of other currencies.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.11% to 91.66, pulling up from Tuesday’s three-and-a-half month lows of 91.47.

The index ended 2017 down 9.8%, the biggest annual percentage decline since 2003.

The dollar weakened as the global economy gained momentum, fueling expectations for tighter monetary policy in other countries, which would lessen the divergence between the Federal Reserve and other central banks.

Market watchers were looking ahead to the minutes of the Fed’s December meeting, where its raised interest rates, which were due to be released later on Wednesday. Two policymakers voted against the rate hike amid doubts inflation would accelerate as hoped.

Investors were also looking ahead to Friday’s U.S. job figures for December.

Elsewhere in metals trading, silver was down 0.44% at $17.13 a troy ounce, platinumadded 0.17% to trade at $949.40 a troy ounce and palladium was down 0.63% to $1,080.55 a troy ounce.

Palladium posted the strongest increase among precious metals in 2017, advancing 57% amid concerns over the supply outlook.

Copper was down 0.73% to $3.254 a pound. Copper prices added 31% for the year in 2017 as prices of the industrial metal were boosted by robust demand from China, the world’s largest base metals consumer, as well as a favorable global economic outlook and supply disruptions around the world.

 

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This article was originally published at Investing.com.