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2018.10.1707:05:00UTC+00Gold Prices Edge Lower After Wall Street Rally

Gold prices drifted lower on Wednesday after U.S. stocks posted their biggest gain in six months overnight following strong earnings from major financial and health care companies as well as encouraging reports on the U.S. economy.

Spot gold fell 0.11 percent to $1,225.90 after hitting a 2-1/2-month high of $1,233.26 per ounce earlier this week. U.S. gold futures were down 0.14 percent at $1,229.30 an ounce.

The firming in equities coupled with gains in the dollar for a second day in a row made non-interest bearing gold less attractive for investors.

The dollar continues its upward trajectory against global peers as markets await minutes from the U.S. Federal Reserve's latest policy meeting for fresh clues on the pace of interest rate hikes.

Tensions over Saudi Arabia also eased after U.S. Secretary of State Mike Pompeo said that the kingdom promised a "transparent investigation" into the disappearance and alleged killing of a prominent journalist.

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