Gold at $1277 Hurt by Fed Intentions

Gold held near a two-month low on Friday and was headed for its sharpest weekly drop in nearly three months, hurt by strong U.S. economic data and fears that the Federal Reserve could hike interest rates sooner than expected.

Spot gold was little changed at $1,277.69 an ounce by 0030 GMT, near a two-month low of $1,273.06 hit on Thursday, when it fell for a fifth straight session.  The metal is down 2.05 percent for the week, its biggest drop since the week ended May 30.

Bullion was hit hard after minutes from the Fed’s July meeting on Wednesday showed policymakers debated whether interest rates should be raised earlier given a surprisingly strong job market recovery.

CNBC

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