Gold settled more than 2 percent higher and near a three-week high on Tuesday, boosted by technical buying and funds’ short-covering in thin trade ahead of the Federal Reserve’s December policy meeting, in which it is expected to begin trimming its monetary stimulus.
Bullion posted its biggest three-day rise in nearly two months and ended above $1,250 an ounce—a level gold had failed to breach in the last three weeks—triggered by heavy buy orders, traders said.
Some funds bought to cover short positions ahead of the Fed’s policy meeting next week, traders said.
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