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Gold holds steady above $1290 level, well within 1-week old trading range

Gold regained some positive traction on Wednesday, albeit remained well within a broader trading range held over the past one week or so.

Spot prices edged through the Asian session and remained support by the UK political/Brexit uncertainty, which underpinned the precious metal’s perceived safe-haven demand. This coupled with dovish Fed expectations, reinforced by comments by various FOMC members, and provided an additional boost to the non-yielding yellow metal.

Meanwhile, a weaker tone surrounding the US Dollar extended some additional support to the dollar-denominated commodity, though bulls lacked any strong conviction amid the prevalent risk-on mood. China’s stimulus pledge to counter the economic slowdown continued prompting some risk-on trade and turned out to be the only factor keeping a lid on any runaway rally for the commodity.

In absence of any major market moving economic releases from the US, the broader market risk-sentiment and the USD price dynamics might continue to act as key determinants of the metal’s intraday momentum through Wednesday’s trading session.

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