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Gold prices trade near the flatline as dollar softens

August 31, 2020

Gold futures traded around break-even levels on Monday as the U.S. dollar weakened slightly heading into the last trading session in August.

Bullion continues to be viewed as a haven in the face of the COVID-19 pandemic, and the precious metal drew increased attention last week after the Federal Reserve said it is shifting to a policy of average inflation targeting which would effectively see policy makers end the practice of pre-emptively hiking interest rates to stave off inflation. That setup is viewed as a bullish one for gold, which is viewed as a hedge against rising inflation.

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