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• Gold rose to its highest level in over six months on Wednesday as weak factory activity data in Europe and Asia compounded concerns of a global economic slowdown and weighed on stock markets, increasing the precious metal’s appeal.

• Spot gold was down 0.2 percent at $1,279.49 an ounce at 2:02 p.m. ET, having earlier touched its highest since June 15 at $1,288.66.

U.S. gold futures settled $2.80 higher at $1,284.10 an ounce.

• “A sell-off in the stock markets today is prompting some safe-haven demand,” said Jim Wyckoff, senior analyst at Kitco Metals.

“Gold prices hit a six-month high and the trend is up on a near-term basis which is inviting technical-based buying interest. Probably some new speculative fund money coming into the market combined to push gold prices higher despite the stronger dollar.”

• The dollar index rose against the euro and sterling on Wednesday.

• World shares started the year on a gloomy note with poor data across Asia, the euro zone and the United States that prompted investor flows into safe haven assets, such as the yen, Treasuries and bullion.

• Euro zone manufacturing activity barely expanded at the end of 2018 in a broad-based slowdown, while China’s factory activity also contracted for the first time in 19 months in December.

• Gold priced in euros jumped to 1,134.08 euros an ounce, its highest level since mid-June 2017. In sterling terms, gold climbed to its highest level since early September 2017, at 1,022.80 pounds an ounce.

• “There is some fading optimism for the euro zone area which is giving gold quite a good lift. It is a continuing trend of what we’ve seen in the latter part of last year,” said Ross Norman, chief executive officer of Sharps Pixley.

Spot gold prices gained about 5 percent last month, the most since January 2017. Some investors expect the precious metal to pass the $1,300 psychological resistance level in the near-term.

• Markets are now awaiting views from Federal Reserve Chairman Jerome Powell on the U.S. economic outlook and hints about interest rates in 2019 when he participates in a joint discussion on Friday with former Fed heads Janet Yellen and Ben Bernanke.

There are expectations that a three-year rate-hiking cycle in the United States has come to a close, which would be beneficial for non-yielding bullion.

Further pointers are expected this week from a closely watched survey on U.S. manufacturing, due on Thursday, followed by the December payrolls report on Friday.

• Among other precious metals, palladium rose 0.16 percent to $1,266 an ounce.

Silver stayed flat at $15.45, having earlier touched its highest since July 31 at $15.61, while platinum fell 0.15 percent to $790.30.

Reference: CNBC