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Gold is trading higher today adding gains for the fifth consecutive session - supported by a broadly weaker greenback. Last week bullion added the most in one week since the January 2015.Now all eyes are on U.S. inflation data due today at 12:30 GMT.
The somehow dovish FED statement still lends some support to the precious metal and ongoing uncertainty over the Greek bailout and its future in the Eurozone add to bullish investor's sentiment. Yesterday ECB president Mario Draghi said in a statement that there is an acceleration of economic growth in the eurozone amid falling oil prices, improvements in external demand, easing financial conditions in the current course of monetary policy, as well as the weakening of the euro.
Recently a strong U.S. dollar and the prospect for higher U.S. rates weighed on the precious metal - as gold is dollar-denominated and not yield-bearing. Now, after the FED removed the 'patient' wording but giving a more dovish outlook on inflation and growth and the greenback is trading lower, gold finds some support.
Gold is currently quoted at USD1,193.80, +0,40% a troy ounce. On Thursday the 22nd of January gold reached a five-month high at USD1,307.40. On Tuesday last week gold traded as low as USD1,142.50, a three-month low.
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