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By Renita D. Young and Eric Onstad
NEW YORK / LONDON (Reuters) – Gold rose on Monday, reaching its highest in two weeks and the dollar weakened even as the dollar bounced up, as some investors bought bullion to cover short positions.
Some traders noted that gold was still in the air.
Spot gold increased 0.3 percent to $ 1,258.52 per ounce by 1:36 p.m. EDT (1736 GMT). The high session of 1,265.87 was its highest since June 26.
U.S. gold futures for $ 3.80, or 0.3 percent, at $ 1,259.60 per ounce.
"Most likely the yuan will remain volatile goal (I do not expect …)," said Georgette Boele, commodity strategist at ABN AMRO.
The yuan rose in offshore markets against the dollar, further off in the fall of the month. The U.S. dollar index weakened early and the euro gained, but the dollar bounced higher in later trading.
A weak dollar makes greenback-denominated gold cheaper for holders of other currencies, especially in Europe when the euro rises.
The euro hit a session high after European Central Bank Governing Council member Ewald Nowotny said the bank could decide this
In addition, Britain's Brexit Secretary David Davis said he was resigned to try to stop Prime, said OCBC badyst Barnabas Gan.
"A little buying could've come from the North Korea meeting," said RJO Futures Josh Graves.
Donald Trump raised concerns that Beijing may be seeking North Korea's denuclearization efforts, though said he was confident Pyongyang leader Kim Jong Un will uphold his end of the deal.
Graves said Monday's gold price increase will li kely be temporary.
"It's running into lows we saw in December – $ 1,275. Until now, "Graves said."
Meanwhile, silver rose 0.6 percent at $ 16.10 a year ago and platinum gained 0.4 percent at $ 844. earlier hit their highest since June 27.
Palladium gained 0.5 percent to $ 958 a year ounce, reaching $ 967.50, its high since June 21.
(Additional reporting by Karen Rodrigues in Bengaluru, Editing by David Gregorio and Mark Potter) [19659019] (This story has been edited by Business Standard staff and is self-generated from a syndicated feed.)
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