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RBC's Gero: short covering boosts gold prices as stock futures ease

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(Kitco News) - Comex August gold has continued its uptick back above $1,700 an ounce, rallying early Tuesday for a second straight day after a Friday sell-off that was prompted by a stronger-than-forecast U.S. jobs report. George Gero, managing director with RBC Wealth Management, cited gold buying in the form of short covering as stock-index futures give back some of their recent strength. Markets also continue to expect dovish U.S. monetary policy ahead of a Federal Open Market Committee meeting this week, Gero added. “Volatility expected this week in gold, [with] many economic and political headlines to come,” Gero said. Longer term, he added, he looks for $1,800-an-ounce gold prices. Around 8:04 a.m. EDT, August gold was $7.60 higher to $1,712.70 an ounce. Stock-index futures for the Dow Jones Industrial Average were around 250 points lower.

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