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Gold hits 2-1/2 month low after Ukraine says ceasefire agreed

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Reuters LONDON
Last Updated : Sep 03 2014 | 2:45 PM IST

LONDON (Reuters) - Gold prices fell to their lowest since mid-June on Wednesday after Ukraine said it had reached agreement with Russian president Vladimir Putin on a "permanent ceasefire" in its eastern Donbass region.

Prices had moved higher in earlier trade in a recovery from the previous day's 1.8 percent fall, but quickly pared gains as European stocks rose and German Bund futures fell.

Spot gold hit a low of $1,261.19 an ounce, and was down 0.1 percent at $1,263.60 an ounce at 0835 GMT.

(Reporting by Jan Harvey; Editing by Michael Urquhart)

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First Published: Sep 03 2014 | 2:38 PM IST

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