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Monday, December 12, 2016

Gold edges down to 10-month low as dollar rises on Fed hike bets





* US gold futures were also at 10-month lows, shedding half a percent at USD 1,156.30 per ounce.


* The dollar inched higher on Monday ahead of the US Federal Reserve's meeting that was expected to deliver an interest rate hike as well as clues to future monetary policy.


* The Fed is widely expected to hike interest rates for the first time in 2016 at a two-day meeting that begins on Tuesday. Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.






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