Gold Drops Below $1200 on Fed Rate Talk

Gold retreated for a third straight session on Thursday on a stronger dollar after Federal Reserve officials kept alive expectations for an interest rate rise some time this year despite recent weak economic data.

New York Fed President William Dudley and Fed Governor Jerome Powell on Wednesday sketched out scenarios in which the central bank could make an initial move earlier than many now expect, then move slowly on further increases.

Minutes from the Fed’s March 17-18 meeting showed officials opening the door to a June rate rise.  Spot gold fell back below $1,200 an ounce after the minutes and comments and was trading down 0.6 percent at $1,203 an ounce.  U.S. gold for June delivery dropped about $8 an ounce to $1,195.