While headline inflation remains high, core inflation has come down and is likely to remain soft in coming months.

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Meanwhile, U.S. Federal Reserve policy-setters acknowledged in a statement Tuesday that economic conditions remain soft and they intend to leave interest rates at record low levels until mid-2013, which analysts have described as supportive for gold.

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Still, the below-50 readings in the HSBC PMI suggest that activity and demand remain soft and that a strong rebound in the fourth appears unlikely, Barclays Capital analysts led by Jian Chang in Hong Kong warned on Wednesday.

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In an emailed statement, the Atlanta-based company noted that soft drinks remain a far larger category than bottled water and that it sees "upside" for sodas over the next several years.

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It is also encouraging that hiring intentions remain firm, and while pricing is soft, there is no indication that deflation is a serious problem.

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