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Gold ticks lower but holds near essential $2,700 level

Gold rates reduced on Friday but hovered around the $2,700 level, as traders examined the effect of Donald Trump's presidency and its ramifications for the U.S. rate of interest outlook.

Spot gold fell 0.4% to $2,697.19 per ounce as of 0251 GMT and was headed for a weekly loss. Nevertheless, prices rose more than 1% in the last session, bouncing from over a 3-week low.

U.S. gold futures were flat at $2,704.50, while the U.S. dollar index was set for a small weekly gain after Trump's election victory.

A stronger dollar makes bullion more pricey for overseas buyers.

Gold prices are partially forced due to the marketplace's. unpredictability over U.S. political and policy advancements, stated. Kyle Rodda, financial market analyst at Capital.com.

The long-term uptrend remains strong for gold, supported by. expected rate cuts and ongoing geopolitical stress, Rodda. added.

Bullion is considered a hedge throughout unpredictabilities and tends. to flourish in a low-interest-rate environment.

At the end of its two-day policy meeting on Thursday, the. Federal Reserve cut rates of interest by 25 basis points as. expected, however showed a careful and determined technique to. any future rate cuts.

Traders now see a 71% opportunity of another 25-bps cut in. December, in what could be the 3rd decrease this year.

In the long term, it still looks bullish for gold however in the. short-term, if prices drop to $2,643, the next levels of support. will be $2,620-$ 2,520, stated Brian Lan, handling director at. Singapore-based dealer GoldSilver Central.

On the other hand, international physically-backed gold exchange-traded. funds (ETFs) saw inflows for the 6th straight month in. October, the World Gold Council (WGC) stated.

Elsewhere, Beijing will finish up a crucial five-day conference later on. in the day, which financiers are closely expecting more. details on stimulus procedures.

Area silver fell 0.8% to $31.75 per ounce, platinum. fell 0.2% to $994.80 and palladium shed 0.21% to. $ 1,022.36.

(source: Reuters)