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Gold dropped as investors shunned safe-haven assets amid expectations that the US will avoid recession next year. However, weakness of the US Dollar as well as signs of strong physical demand from central banks limited losses of the yellow metal.
Silver moved in tandem with gold, sliding 2.02% ahead of key housing market data from the US due on Wednesday. At the same time, the grey metal drew some strength from a rally of the global equities and softer greenback.
Platinum and Palladium extended previous losses amid speculation that US officials are moving closer to budget agreement. However, a deficit on the physical market after strikes in South Africa and a decline in Russian exports continued to lend support for the metals.