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Gold Dips On Strong US Data

Gold prices fell from a two-week high on Wednesday as an array of strong data from the United States and Europe raised hopes for a swift economic recovery from the coronavirus pandemic and weighed on the metal's safe-haven appeal.

Spot gold dipped 0.3 percent to $1,738.25 per ounce, while U.S. gold futures were down 0.2 percent at $1,738.90 per ounce.

Economic optimism prevails after data showed U.S. job openings rose to a two-year high in February and hiring picked up on strengthening domestic demand.

Final PMI numbers from Europe were in focus this morning, with the Eurozone's services PMI increasing from 45.7 to 49.6 in March. That was up from a preliminary reading of 48.8.

The IHS Markit/CIPS composite Purchasing Managers' Index for U.K. - measuring Britain's huge services sector and its manufacturers - rose to 56.4 in March from 49.6 in February.

The International Monetary Fund raised its outlook for global economic growth, forecasting worldwide output would rise 6 percent this year, an increase of 0.5 percentage points from the 5.5 percent growth forecast the institution issued in January of this year.

Investors now await the minutes of the most recent Federal Open Market Committee meeting for clues as to when the U.S. central bank might raise rates.

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