Gold struggled on Wednesday to hold near a 12-week high as a rout in commodities such as oil and copper took a toll on the metal, offsetting safe-haven bids arising from global growth concerns.
Oil added to losses on Wednesday to trade near its lowest since 2009, while copper dropped to 5-1/2 year lows. Spot gold fell 0.3 percent to $1,227.50 an ounce by 0339 GMT, after marking a 12-week high of $1,243.60 on Tuesday.
“We are giving back some of the gains because of the overall unwinding of positions in commodities,” said a precious metals trader in Sydney, adding that gold also faced technical resistance at around $1,244. “Gold might push higher, given equities have been volatile, but it will be hard work. In the short term we might squeeze lower to $1,220 before we head back up.”
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