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Gold Firm on Strong Festive Demand in India

The prices of Gold stayed solid on Wednesday as stronger physical demand for the precious metal, ahead of India’s Diwali festival season, offset a firm US dollar. Demand for bullion is also expected to pick up in view of Dhanteras and Diwali, when gold is traditionally given as a gift.

Spot gold was up about 0.1% at USD 1,275.04 an ounce by 0445 GMT. In the previous session, it hit USD 1276.67, its highest since Oct. 5. US gold futures settled up 0.16% at USD 1,275.7 an ounce.

A Reuters poll showed the Federal Reserve is expected to raise interest rates in December.

Holdings of the Standard & Poor’s depositary receipt (SDPR) Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.34% to 956.83 tonnes on Tuesday from 953.56 tonnes on Monday.

Spot gold may rise towards USD 1,292 per ounce, having cleared a resistance at USD 1,273, as per Reuters analyst.

Silver climbed 0.22% to USD 17.82 an ounce. Platinum slipped 0.23% to USD 961.00 an ounce, while palladium edged up 0.2% to USD 634.20.