Gold on Wednesday traded in a narrow band but maintained its bid tone and is hovering around 3-week high level touched on Tuesday to currently trade around $1364 (£1023.10) region.
The US Dollar remained under intense selling pressure on Tuesday and extended support to dollar-denominated commodities – like gold. Adding to this, weaker equity markets boosted appeal for safe-haven assets, providing additional momentum to buoyant gold prices.
On Wednesday, weaker Chinese services PMI data dented investor risk-appetite and helped the yellow metal to hold on to its recent gains.
Going forward, ISM non-manufacturing PMI and ADP report on private sector employment details from the US would provide fresh impetus for the precious metal. In the meantime, prevalent risk sentiment would continue to drive the metal during European trading session.
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