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Gold firms as U.S. dollar, bond yields fall

Gold prices rose on Thursday, as the U.S. dollar and Treasury yields fell on mounting expectations of slower monetary policy tightening by the Federal Reserve later in the year.


* Spot gold rose 0.3% to $1,669.16 per ounce by 0116 GMT, after hitting a two-week high on Wednesday.

* U.S. gold futures were up 0.3% at $1,673.30.

* The dollar index was little changed after hitting its lowest level since Sept. 20 earlier. A weaker dollar makes greenback-priced gold less expensive for overseas buyers.

* Benchmark U.S. 10-year Treasury yields slid further away from multi-year peak touched last week.

* Report from Commerce Department on Wednesday showed sales of new U.S. single-family homes dropped in September and data for the prior month was revised lower, supporting the view that Fed rate increases are already working.

* The U.S. central bank is widely expected to announce a fourth straight 75 basis-point interest rate increase at…

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