Gold prices gained momentum on Wednesday as the dollar dipped on speculation about the US central bank cutting interest rates this year amid global economic growth concerns. Spot gold was trading 0.5% higher at $1,332.77 per ounce as of 1:32 p.m. EDT (1732 GMT), a rebound from the previous session when it fell to a 10-day low of $1,319.35. US gold futures settled 0.4% higher at $1,336.80 per ounce.
"Today, global equities are weaker, there is some safe-haven buying, and buying ahead of the US Fed meeting next week," said Bob Haberkorn, senior market strategist at RJO Futures. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell marginally to 756.18 tonnes on Tuesday from 756.42 tonnes on Monday.
The gold bulls have the overall near-term technical advantage and regained momentum today," Jim Wyckoff, senior analyst at Kitco, said in a note. He added that the next upside price target would be a close in August futures above June's high of $1,352.70. Among other metals, silver was up 0.6% to $14.78 per ounce, while platinum dipped half a percent to $808.75 an ounce.
Palladium was trading more than 1% higher at $1,408.51, having hit a six-week high of $1,414.40 earlier in the session. The autocatalyst metal was trading higher for a fifth consecutive session.
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