MTECHTIPS;-Gold edges higher but remains close to 10-month trough

MTECHTIPS;-Gold edges higher but remains close to 10-month trough

MTECHTIPS- Gold prices edged higher on Friday, but the precious metal was still hovering close to a 10-month trough as the stronger U.S. dollar and expectations for more U.S. rate hikes next year continued to weigh. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.13% at $1,132.15, not far from the 10-month low of December 15 at $1,123.90. The February contract ended Thursday’s session 0.22% lower at $1,130.70 an ounce. Futures were likely to find support at $1,123.90 and resistance at $1,136.10, Wednesday’s high. The dollar was boosted after U.S. Commerce Department said on Thursday that gross domestic product grew at an annual rate of 3.5% in the three months ended September 30, up from a previous estimate of 3.2% and above expectations for a reading of 3.3%. The greenback has been broadly supported since the Federal Reserve concluded its policy meeting last week by raising interest rates by 25 basis points and projected three more rate hikes for 2017. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 103.06, just off Tuesday’s fresh 14-year highs of 103.62.

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