LONDON, Sept 7 Gold dipped on Wednesday, losing momentum due to profit taking following a rally in the previous
session on U.S. data that weakened the case for a U.S. rate rise
U.S. services sector activity slowed to a 6-1/2-year low in August amid sharp drops in production and orders, pointing to
slowing economic growth that further diminished prospects for a near-term interest rate increase.
The U.S. non-manufacturing new orders index for August fell to its lowest since December 2013.
Gold is highly exposed to interest rates and returns on other assets, as rising rates lift the opportunity cost of
holding non-yielding bullion.
Spot gold was down 0.2 percent at $1,346.12 per ounce by 0211 GMT. The metal earlier touched a high of $1,352.65, its
best since Aug. 19.U.S. gold futures slipped 0.24 percent to $1,351 per ounce.
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Article from Reuters.