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Gold Futures Settle At 2-week High

Gold prices moved higher on Wednesday, extending gains from previous session, as traders went for the safe haven asset after the dollar drifted down and the likelihood of a chaotic Brexit increased.

The greenback stayed subdued against most major currencies, with the latest batch of inflation data suggesting the Fed would stay patient with regard to interest rates.

The dollar index dropped to 96.65 before edging up to 96.72, still down by more than 0.25% from previous close.

Gold futures for April ended up $11.20, or 0.9%, at $1,309.30 an ounce, the contract's first close about the $1,300 mark in about two weeks.

On Tuesday, gold futures for April ended up $7.00, or 0.5%, at $1,298.10 an ounce.

Silver futures for May settled at $15.456 an ounce, up $0.043 from previous close.

Copper futures for May ended up $0.0070, at $2.9355 per pound.

Data released by the Labor Department today showed a modest increase in producer prices in the month of February.

The report said the producer price index for final demand inched up by 0.1% in February after edging down by 0.1% in January. Economists had expected prices to rise by 0.2%.

Excluding food and energy prices, core producer prices also ticked up by 0.1% in February after climbing by 0.3% in the previous months. Core prices were also expected to increase by 0.2%.

The report also said the annual rate of consumer price growth slowed to 1.5% in February from 1.6% in November, while the annual rate of core consumer price growth edged down to 2.1% from 2.2%.

"The rebound in underlying capital goods orders in January stands out as a positive amid the recent flood of downbeat activity data, but it is still consistent with a gradual slowdown in business equipment investment growth in the first quarter," said Michael Pearce, Senior U.S. Economist at Capital Economics.

He added, "And with the February producer price figures showing that pipeline inflationary pressures remain subdued, there is still a strong case for the Fed to remain patient."

The British Parliament will vote later today on whether Britain will crash out of the EU with no deal. If that fails, a further vote on Thursday will decide whether to extend the Brexit deadline.

Investors also waited for signs of progress on the U.S.-China trade dispute, with Robert Lighthizer, the U.S. trade representative, saying that "major issues" must still be resolved for a successful U.S.-China trade deal.

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