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Gold prices edged up on Thursday, after touching their highest since September in the previous session, buoyed as a rally in equities appeared to falter. Spot gold was up 0.1 percent at $1,317.93 an ounce by 0655 GMT. On Wednesday, it marked its lowest since September 15 at $1,326.56 an ounce.

US gold futures were down 0.1 percent at $1,319.10 an ounce. "Rising oil prices and strong global growth suggest gold will remain supported as investors look for inflation protection," said Stephen Innes, APAC head of trading at Oanda.

"Also, a highly-anticipated stock market correction is providing support on dips which continues to support the bullish gold narrative." "Gold could test $1,327 in the short term and above which $1,362 will be opened ... Global equities are running at a high level of exuberance, confidence and valuation ... which in short stands for a bubble," said Amit Kumar Gupta, portfolio management services head at Adroit Financial Services.

Spot gold looks neutral in a range of $1,311-$1,329 per ounce, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.

Copyright Reuters, 2018


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