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Gold prices rose on Wednesday, extending gains after it hit a near two-week high in the previous session, on a technically-driven rebound in thin volume amid a slightly weaker dollar. Spot gold was up half a percent at $1,143.98 an ounce by 0636 GMT. Gold hit its strongest since December 14 on Tuesday at $1,148.98. US gold futures also rose 0.5 percent at $1,144.50 per ounce. "Currently we do not see many strong fundamental reasons to push gold prices further down.

However, after the Fed conference in December, there should be some technical rebound in gold prices," said Jiang Shu, chief analyst, Shandong Gold Group. "Since there are a few trading days left until the end of this year we think that the rebound will not be very strong." Spot gold may bounce to $1,210 per ounce before falling towards its December 15 low of $1,122.35 in the next three months, according to Reuters technical analyst Wang Tao. Reflecting bearish investor sentiment, assets in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.14 percent to 823.36 tonnes on Tuesday. Holdings are down about 13 percent since the US presidential elections.

Copyright Reuters, 2016


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