Gold was trading near its highest level since early September on Wednesday, supported by concerns over slower economic growth in China, although expectations Asian physical demand may slacken kept gains in check. Worries over the fate of the global economy heightened this week after China said third-quarter growth was the slowest since 2009, lifting appetite for safe-haven assets such as gold.
Gold and other metals have been a bit oversold and USD 1,200 is quite a solid support level. We have also seen Chinese buying this month that has supported gold," said Ikemizu.
Spot gold was little changed at USD 1,248.61 an ounce by 0242 GMT, not far below Tuesday's peak of USD 1,255.20, which was its highest since Sept. 10.
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