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2018.05.3001:38:00UTC+00Gold Prices Slightly Higher as Italy Crisis Propels Safe-Haven Buying

Gold prices increased on Wednesday as political turmoil in Italy and concerns over China-U.S. trade conflict fueled safe-haven demand, though a strong dollar limited gains for the metal.

Spot gold rose 0.1 percent to $1,298.86 per ounce

U.S. gold futures for June delivery were almost unchanged at $1,298.80 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, was near its 6-½-month high notched in the previous session.

Investors fear that repeat elections in the eurozone's third-largest economy - which could come as soon as July - may become a de-facto referendum on Italian membership of the currency bloc and the country's role in the European Union.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, increased 0.35 percent to 851.45 tonnes on Tuesday.

In other precious metals, spot silver fell 0.1 percent at $16.34 an ounce. Platinum dropped 0.3 percent to $901.20 an ounce and palladium lost 0.5 percent at $974.05.

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