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Gold holds near 2 ½-month lows

FXStreet (Córdoba) - Gold recovered slightly Thursday but gains were short-lived, with the metal trading close to 11-week lows, as prices continue to suffer on the back of a stronger dollar.

The yellow metal climbed to a high of $1,273 an ounce earlier on the day, but failed to hold at highs and reversed completely intraday gains to trade nearly flat just below $1,270 an ounce.

On Wednesday, gold hit a 2 ½-month low of $1,261 an ounce in a bout of risk appetite amid reports, that were later denied, that Ukraine and Russia had reached a ceasefire agreement. The metal was already under pressure given broad USD strength.

Gold outlook

"The recovery of the US economy will be the main aspect of the Gold price movement in the middle run", said Anthony Wu, analyst at MXT Global. "The negative outlook of the Gold price remains and last night’s bright Factory orders gave us more confidence. The orders spiked 10.5% in July, which was the highest record since the data collection started in 1992. The Dollar retreated in the US afternoon, but the Gold price was still subdued by $1270".

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