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Gold Dips On Dollar Strength

Gold hovered near a two-week low on Monday as the dollar strengthened on expectations that the Federal Reserve might accelerate the pace of policy tightening.

Spot gold dipped 0.4 percent to $1,838.78 per ounce, while U.S. gold futures were down 0.6 percent at $1,840.85.

The U.S. dollar was higher against its most major counterparts amid safe-haven demand due to rising coronavirus cases and curbs in Europe, as well as hopes for a faster tapering of the QE program amid strong economic recovery.

Austria imposed a full national lockdown and Germany warned of similar measures, after COVID-19 cases continued to surge in Europe.

Hawkish comments from Fed Vice Chairman Richard Clarida and Fed Governor Christopher Waller intensified hopes for an earlier tightening of monetary policy.

Clarida said on Friday that the economy is "in a very strong position" and a faster tapering of the QE program is on the cards.

Waller urged to accelerate the pace of the tapering in the wake of the rapid improvement in the labour market and the hot inflation data.

Investors await U.S. durable goods orders, GDP data, personal consumption expenditure price index and Fed minutes this week for more direction.

U.S. existing home sales for October will be published in the New York session.

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