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    <p>By Diptendu Lahiri</p> <p>Sept 2 (Reuters) – Gold backtracked on Wednesday from a near two-week high in the prior session as the dollar rebounded and strong U.S.

    manufacturing data raised hopes of a swifter global economic recovery.</p> <p>Spot gold fell 0.7% to $1,957.15 per ounce by 1133 GMT, after hitting its highest since Aug. 19 at $1,991.91 on Tuesday.</p> <p>U.S. gold futures dropped 0.6% to $1,966.70.</p> <p>Gold is being weighed down by the rise in equity markets and the dollar, but “it’s not very surprising that investors will take a little bit unbiased reviews of appetite suppressants profit” after Tuesday’s rally in gold, said Commerzbank analyst Eugen Weinberg.</p> <p>”However, besides other strong fundamentals like weak economy and lower interest rates, Australian and U.S. mints reporting very high demand for gold coins will take gold above $2,000 in the long run.”</p> <p>The dollar index <.DXY > rebounded from a two-year low after data revealed that manufacturing activity in the U.S.

    increased more than expected in August, which followed similar positive indicators this week from China and Europe.</p> <p>A stronger greenback makes gold expensive for holders of other currencies.</p> <p>The robust data also boosted equity markets.</p> <p>Nonetheless, expectations that U.S.
    interest rates would stay low for longer under the new monetary policy approach from the U.S. Federal Reserve put a floor under gold prices.</p> <p>Low interest rates reduce the opportunity cost of holding non-yielding bullion, also viewed as a hedge against inflation and currency debasement.</p> <p>On the physical side, although overall consumption remained weak, especially in top buyer China, gold sales from Australia’s Perth Mint rose threefold year-on-year in August, while India saw imports jump, pointing to a gradual recovery.

    [nL4N2FZ1WK</p> <p>Meanwhile, Turkey’s gold imports surged four-fold as Turks scrambled to hedge against record drops in the lira currency.</p> <p>Elsewhere, silver dipped 2.1% to $27.58 per ounce, platinum slipped 1.2%, to $929.94, and palladium fell 1% to $2,248.72.</p> <p>(Reporting by Diptendu Lahiri in Bengaluru; editing by David Evans and Elaine Hardcastle)</p></div>
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