Gold Near Three Week High Around 1260

Gold snapped a three-day winning streak on Wednesday but was well-supported near a three-week high, boosted by short-covering and weakness in the dollar.

News of U.S. lawmakers reaching a budget agreement to avoid a government shutdown next month dented some of gold’s safe-haven appeal, while physical demand also cooled in Asia on higher prices.

But analysts said technical buying should support prices for a little longer.  Spot gold had eased 0.3 percent to $1,256.31 an ounce by 0410 GMT, after gaining 3 percent in the last three sessions – its strongest such winning run since October.

CNBC

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