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Gold futures shed early losses to trade higher Wednesday, finding support in a weaker dollar after testimony from Federal Reserve Chairman Ben Bernanke was interpreted as signalling the end of the rate-hiking cycle may be closer than many people expected.
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The dollar fell against all its major trading partners after Bernanke told Congress that the economy is likely to slow, easing inflation pressures. His comments came just ninety minutes after a consumer inflation report that showed core prices rising at a faster-than-expected pace.
Gold may now regain some of its safe-haven allure. Overnight, fighting between Israel and Lebanon continued. Since the conflict broke out last week, at least 270 Lebanese citizens and 25 Israelis have died, according to the BBC. An Israeli general said Tuesday that Israel's offensive would continue for another few weeks, and that the deployment of large numbers of ground forces had not been ruled out. |
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