INTERNATIONAL - Gold resumed its rally above $1400 an ounce on a cocktail of positive drivers, with Treasury yields hitting a two-year low and the US president seeking to reshape the Federal Reserve board with two picks seen as doves.
Bullion extended the biggest one-day gain in three years ahead of the US holiday today, as investors weighed a run of poor economic data from Asia and Europe, which fed expectations for fresh easing from central banks.
Holdings in gold-backed exchange-traded funds slipped to snap 14 days of gains Tuesday, but are still near the highest since 2013. "The longer-term picture looks positive for gold," said Georgette Boele, co-ordinator of FX and precious metals strategy at ABN Amro Bank NV, to Bloomberg Television.
Still, she suggested prices are probably overshooting at the moment. "The market has been too aggressive pricing-in rate cuts both from the Fed and other central banks," said BoeleBloomberg